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New Bid Confuses Oaks Takeover

The seemingly easy solution to the Oaks conflict has suddenly become very confused again as a Queensland company, Retail Food Group, unveiled a surprise $95 million alternative bid for the group.

The rival takeover comes as the Thailand-based Minor International Group continues with its push to acquire Oaks at 52c a share, subject to ASIC approval.

RFG, a food franchising company that owns Donut King, Michel’s Patisserie, Brumby’s and Big Dad’s Pies, launched a conditional offer of 54.5c for each Oaks share or a cash payment of $2.60 and one RFG share for every 10 Oaks shares held.

However, Oaks founder and sacked chief executive Brett Pointon has labelled RFG’s buyout bid “opportunist” and unattractive, given what he described as a lack of synergy between the two companies.

Mr Pointon, who wants his CEO post back that depends, it seems, on Bangkok-based Minor International gaining control of Oaks, said that a successful RFG bid would make a mockery of the process that led to Minor being awarded his 34% private stake in Oaks.

The Thai hospitality conglomerate bought the stake on May 2, which boosted its holding to 54.3%, after winning a bidding war that included RFG. But the deal needs Australian Securities and Investments Commission approval.

“I can’t see why ASIC would overturn their release because it was a fair and transparent process, that process PricewaterhouseCoopers [the receivers] went through,” Mr Pointon said.

Oaks wants ASIC to reject Minor’s application, clearing the way for RFG’s offer. But two Oaks directors, John Cowley and Colin Archer, are also on RFG’s board.

RFG launched a conditional offer of 54.5c for each Oaks share or a cash payment of $2.60 and one RFG share for every 10 Oaks shares held. The bid is conditional on ASIC not granting relief to Minor, for its controversial acquisition of a 34 per cent parcel of stock obtained by the Thai group from receivers of two Pointon companies PricewaterhouseCoopers earlier this month.

RFG chief executive Tony Alford said, “the Oaks business model will align and benefit from the proven expertise of RFG’s systems, management, property and marketing functions.”

“The Oaks’ business is poised for reinvigoration and its amalgamation with RFG’s existing franchise system, further diversifies RFG’s revenues and remains consistent with its broad focus on property, leasing, and management of third party stakeholder relationships and interests,” Mr Alford said.

The Oaks board, headed by Doug Wong, has backed the RFG bid, which values Oaks at $94.7 million.

“We welcome the RFG proposal, which reinforces the Oaks recommending directors’ view that the Minor bid is inadequate,” he said.

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