Vitasoy dives 9pc on expensive buyout

Shares of Vitasoy International (0345) plunged by 9.4 percent yesterday after it said it will complete the acquisition of the remaining stake in Vitasoy Australia that is held by National Foods at a much higher price of A$51 million (HK$285.6 million).

In a filing yesterday, the soymilk maker said it had specified A$27.5 million as the fair value of the transaction when it exercised the call option to acquire the remaining 49 percent of the stake in Vitasoy Australia. But it was informed on November 7, 2022, that National Foods did not accept the price.

Under the shareholders' agreement, if the fair value amount is rejected by National Foods and no agreement can be reached by the parties, they would have to jointly appoint an expert and the final price determined by the expert would be final and binding on them, the filing said.

They chose the expert on December 13 who later decided the final price of the acquisition would be A$51 million, up by 85 percent from the original plan, it said.

Vitasoy owns a 51 percent interest in its Australian business and will have full control of it once the acquisition completes, the filing said.

All directors of Vitasoy believe the total consideration is "fair and reasonable" and in the interests of the company and its shareholders as a whole, it added.