October 4, 2007 – Golden Circle has thrown out an AUS$200 million offer from Coca-Cola Amatil (CCA).
The Queensland-based beverage company decided to reject the deal from CCA after a nine-hour meeting of the board of directors.
Golden Circle chairman Ern Pope is reported as saying the offer from the drinks giant was rejected on the basis of cost, after CCA tabled a bid for AUS$1 per share. It would also have included a provision to take on the company’s debt, thought to be in excess of AUS$110 million.
A rival bid in the form of a AUS$35 million private equity deal with Anchorage Capital Partners and Macquarie Bank that would allow existing shareholders to hang on to 65 pct of the company now looks set to be considered on October 29.
It is not possible to put both offers to shareholders and allowing them to choose as any bid must receive unanimous support in order to be accepted.
Golden Circle’s 82 million shares are not listed on the stock exchange. Only fruit growers or those who purchased shares while involved in the industry can trade the shares privately.
CCA is partly owned by The Coca-Cola Co., which has a 30 pct share in the Australian outfit.