Vitaco Health Group will need more capital if it goes ahead with plans to expand its Auckland manufacturing and warehousing, which it says shareholders should be aware of in contemplating a $A313.7 million takeover bid from a Chinese-led consortium.
The ASX-listed food supplements maker has entered into a scheme of arrangement with drugmaker Shanghai Pharmaceuticals and private equity firm Primavera Capital which would see the buyers pay $A2.25 a share, including any final dividend declared when it reports annual earnings this month. That was 28% higher than the closing price on Wednesday before the deal was announced yesterday, although a more modest 7.1% premium to the $A2.10 initial public offering price when Vitaco listed last year. The shares closed at $A2.11 yesterday, gaining 20% after the deal was announced.