Asahi's takeover offer for Charlie's fair, says valuer

Asahi’s offer for Charlie’s falls within independent valuation range, Grant Samuel says

July 21 (BusinessDesk) – Japanese brewer Asahi’s $129.3 million takeover offer for Charlie’s Group Ltd. falls within the independent valuation assessed by Grant Samuel.

The advisory firm values Charlie’s shares in a range of 41 cents to 45 cents. Asahi’s offer of 44 cents a share represents a “fair” multiple to forecast EBITDA for the year ending June 30, 2012, of 11.4 times, its report said.

Asahi is cementing its position in the Australasian drinks market, adding to its Schweppes Australia unit, that country’s second-largest soft-drinks company behind Coca-Cola Amatil, with the acquisitions of Charlie’s and the juice and water businesses of P&N Beverages Australia.

Grant Samuel said any competing takeover offer faces a major impediment because the founders of Charlie’s, Stefan Lepionka, Mark Ellis and Simon Neal, major shareholder Colin Asset Management and Tim Cook have a lock-up agreement to sell into the offer and collectively hold 52.17% of the shares.

The offer from Asahi’s local unit, Asahi Beverages New Zealand Ltd., represents a premium of 57% to the juice-maker’s closing price before the deal was made public.

Charlie’s board of directors has recommended shareholders accept the deal unless a better offer eventuates or the independent adviser’s report says the price falls short of the valuation range.

The juice-maker has flagged higher sales and earnings for the 2012 financial year on the back of increased penetration in the Australian market.

In the past year, Charlie’s has managed to launch its products in Australian supermarkets Coles and Woolworths, forcing rapid growth in sales across the Tasman.

It’s also gained footholds in the Hong Kong and South Korean markets. As part of the deal, co-founder and chief executive Stefan Lepionka will stay in his role in charge of the company.

The sale is conditional on Overseas Investment Office approval, and contingent on Asahi achieving a full takeover. If successful, Asahi will de-list Charlie’s from the local stock exchange.

(BusinessDesk)

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