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


  1. Common story in NZ isn't it. Another great kiwi company being swallowed up by a multinational.
    I feel a little sad.

  2. Me too but Asahi have made a good offer. You drink their product up there?

  3. Hi Darren, Sure and it's not a bad drop either.
    I have nothing against Asahi, it's just that when things started to go well for Charlies (and we have been struggling with it for a few years now, the last year not withstanding.) the management sell out at the first opportunity with rubbish talk about goals being achieved. We could have gone far with this company, now it will be delisted and it'll be one less on the NZX. Suppose I'll just have to take my profits and invest in a few of Mr Asahi's fine products..untill another opportunity comes along.

  4. Hey well dome you RJ. You are right about the company doing well(finally)and its prospects under current ownership looked good long-term and there was potential to grow the business much bigger than it currently is. It would have taken longer but it looks like they could have done it. With Asahi the growth should come quicker with their supply chain and bigger retail floor reach.

    I hope you put the house on it mate.


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