Bega Cheese accepts revised offer for Vitasoy Australia stake

Bega Cheese has reached an agreement with Vitasoy International over the price of its 49% stake in their joint venture, Vitasoy Australia Products.

Australian food producer Bega became a partner in the JV as part of its acquisition of Lion Dairy & Drinks in 2021 and owns the minority interest through its subsidiary, National Foods. 

Under the terms of the original deal, Vitasoy International had the right to buy out Bega’s holding in the business. In November, the company lodged its intention with the Hong Kong Stock Exchange to exercise this call option through its subsidiary Vita International. 

However, Bega described Vita’s offer of AUD 27.5 million (then $18.5 million approx.) as “substantially less than” the fair value of its shareholding.

The terms of their agreement dictated that the purchase price would either be agreed by the parties or decided by an independent expert. After resorting to the latter option, a new “fair value” has been determined at AUD 51 million ($36 million approx.). 

In an ASX announcement, Bega said that it “recognises the growing market importance of plant-based beverages and products and will assess its options to continue involvement in this sector”.