Market Herald logo


Be the first with the news that moves the market
  • Bellamy’s open to $1.5B takeover by China Mengniu Dairy Company
  • Mengniu will acquire all shares in the company
  • Shareholders will receive $13.25 for each share they hold
  • Following the announcement Bellamy’s share price jumped nearly 54 per cent, to sit at $12.80 apiece

Bellamy’s Organic is looking to sell the company to one of China’s leading dairy manufacturers for roughly $1.5 billion.

Upon announcing the takeover plans to the market this morning, shares in the company have jumped nearly 54 per cent, adding $4.48 in value to each share.

Shares in Bellamy’s are currently worth $12.80 apiece, as of AEST 10:52 am.

China Mengniu Dairy Company, who is listed on the Hong Kong stock exchange, will make the purchase of Bellamy’s acquiring all shares in the company.

Assuming the buyout goes ahead, Bellamy’s share holders will receive $13.25 per share they hold. This will be broken up by a $12.65 payment from Mengniu Dairy and a $0.60 fully franked dividend from Bellamy’s.

“The Bellamy’s board has unanimously concluded that the scheme is in the best interests of the shareholders,” Bellamy’s Deputy Chair John Murphy said.

Selling the company to Mengniu Dairy is seen as a strategic move by Bellamy’s CEO Andrew Cohen, giving Bellamy’s better access to the growing Chinese market.

Mengniu Dairy “offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia,” Andrew said.

When discussing the purchase of Bellamy’s, CEO of Mengniu Jeffrey Minfang Lu said the organic dairy producers brand, product and operations are key factors of the buy.

“This leading organic brand position and Bellamy’s local operation and supply-chain are critical to Mengniu,” Jeffrey said.

He added, “our sales growth ambitions for Bellamy’s in Australia, and the broader Asia Pacific region, will see investment in the local dairy industry to ensure the required capacity is in place the achieve these plans.”

BAL by the numbers
More From The Market Herald
Fortescue Metals Group (ASX:FMG) - CEO, Elizabeth Gaines

" Fortescue Metals Group (ASX:FMG) ends turbulent quarter with record shipments

Fortescue Metals Group (FMG) has released its latest quarterly report, reflecting on a turbulent period which saw one of its own workers die
Codan (ASX:CDA) - CEO, Donald McGurk

" Codan (ASX:CDA) shares slips despite military contract win

Codan (CDA) subsidiary, DTC Communications, has been awarded multi-year contract with a global technology company.

" Rio Tinto (ASX:RIO) fined over worker heat stress death

Rio Tinto (RIO) has been fined $80,000 and forced to pay $7500 in costs today after three employees were exposed to extreme conditions
Dicker Data (ASX:DDR) - Chairman and CEO, David Dicker (left)

" Dicker Data (ASX:DDR) soars after announcing profit increase

Dicker Data (DDR) shares have soared after the ASX-200 lister posted a 26 per cent increase in profit before tax over the last