Monday, July 4, 2011

Charlies Group Ltd: Asahi make takeover offer

What was looking likely all along has happened to Charlies Group Ltd [CHA.NZX] this morning. An offer has been made for full control of the company by 
Asahi Beverages New Zealand Limited, whose parent company is Asahi Group Ltd [2502:JP], the Japanese brewing and drinks giant.

The offer made this morning is 44c which is 16c or 57% higher than its trading close of 28c last Friday. Directors have given their full support for the takeover and it is likely that shareholders will accept given the significant premium over the market price.

Asahi have obviously seen the positive progress of the company over the last year or so and the distribution channels (1, 2) that they have opened up in Australia recently would compliment their Schweppes Australia softdrink business and also open up further shelf space for Charlies products.

Investors only have to ask themselves if they think current management would be able to add the same value that Asahi will do for the Charlies brand and how long they would take to do that and therefore propel the share price to the level of thew Asahi offer.

Depending on your long-term outlook for the company, the offer looks like a good one for the short to medium term shareholder and will be a good cash boost for the founders of the company Marc Ellis and Stephan Lepionka.

Charlies was a pick at 17.5c in Share Investors 2011 Stock Picks.

Takeover Documents

Charlies Group @ Share Investor

Share Price Alert: Charlies Group Ltd
Share Investor Q & A: Charlies Group CEO Stefan Lepionka
Chart of the Day: Charlies Group Ltd
Charlies Group: A Triumph of Style over Substance
Charlies juicing through Shareholder cash

Discuss CHA @ Share Investor Forum

c Share Investor 2011