Bellamy’s share price: where next as $1.5bn takeover approved?

The Bellamy’s share price has edged to the $13.23 mark after the company announced that the Supreme Court of New South Wales had approved Mengniu’s $1.5 billion takeover offer.

Was there ever actually a conspiracy to push down Bellamy’s (ASX: BAL) share price, thus making it a potentially more attractive takeover target?

Or was such speculation – the kind you may see in a day-time straight-to-TV-movie – nothing more than that: a fiction?

That was the key question we pondered when we first reported on Mengniu’s $1.5bn takeover bid. Or specifically, and in the words of Greens Senator Peter Whish-Wilson, there was the calling for an investigation into:

‘Whether any actions by the Chinese government, including withholding import approvals, constitute a conflict of interest and could reasonably be seen to be market manipulation.’

Either way, such musings are of little consequence at this point. Likely to the relief of shareholders in Australia and abroad, at 15:25 AEDT today Bellamy’s revealed that Mengniu’s takeover bid had been approved by the Supreme Court of New South Wales.

This caps off the last requirement for the $1.5bn takeover to be finalised, with Bellamy’s receiving FIRB and shareholder approval in the weeks prior to today’s afternoon announcement.

Bellamy’s share price: where next?

Ultimately, the nature of the takeover deal has today remained unchanged: Bellamy's shareholders will receive $13.25 cash per share – for those holding the company's stock as of 19.00pm AEDT, 17 of December – according to today’s release.

This will be made up of a $12.65 cash per share payment, made by Mengniu; as well as a fully-franked special dividend of 60 cents per share, paid by Bellamy's.

Commenting on when the situation will truly be finalised, the company noted that:

'The Scheme Consideration will be paid by Mengniu on the implementation date, which is scheduled to be on Monday, 23 December 2019. The Special Dividend will be paid by Bellamy's on the implementation date, immediately prior to implementation of the Scheme.'

The Bellamy’s (ASX: BAL) share price moved in-sync with these details, edging up to $13.23 per share as today’s session came to a close.

As was alluded to: this deal does look to be in the best interest of shareholders, overall. Indeed, when the Mengniu takeover was first announced, the price on offer, representing a '54% premium to the 3-month volume weighted average price to 12 September 2019 of $8.59’ did indeed cater to shareholder interests.

That is of course unless you bought in or around Bellamy’s March 2018 peak – when the company’s stock floated around the $20 per share mark.

Practise trading Australian stocks with an IG demo account now

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.