During my secondary school days, I had to wake up extremely early so that I can travel to my secondary school in time. When there was a lack of time, I would resort to Super’s NutreMilk 3-in-1 cereal milk. Within seconds, I was able to have this energy booster to kick start my day. Even during the rainy days, it was my comfort drink. As I grew older, somehow, this habit stopped. Perhaps, there are more options for me as I start my day a little later now.
Who is the company behind this product?
Recognised as Malaysia’s largest coffee manufacturer, Super Group Ltd [market capitalization of S$1.08 billion] manufactures and distributes instant food and beverage products primarily in Singapore, Southeast Asia, East Asia, and internationally. There are two segments: Branded Consumer and Food Ingredients.
The company offers its products under the Super Coffee, ESSENSO MicroGround Coffee, Charcoal Roasted White Coffee, OWL, NutreMill, Super Power, Tea Infusion, Super Cup Signature, Café Nova, Gold Café, Gold Eagle, Coffee King, YeYe, Yesté, and Negresco brands. In addition, it is involved in the wholesale, import, and export of pre-packed non-dairy creamers and other food ingredients; and distribution of beverages and food products.
To get more information about their company, click here for their factsheet.
Pre-Conditional Voluntary Conditional General Offer for Super Group Ltd
Super Group Ltd released an SGX announcement on 3 Nov 2016.
In a deal brokered by Evercore Asia (Singapore) Pte Ltd, Jacobs Douwe Egberts B.V. launched an offer of S$1.30 for each Super Group’s share – a hefty 34% premium over Super’s last traded price of S$0.97. The takeover offer is worth S$1.45 billion in total. This deal values Super Group at a non-adjusted Price-to-Earnings multiple of 32.6 including cash, debt and excluding minority interest.
A group of investors provided irrevocable undertakings to tender their shares in support of this general offer. One of the shareholders, YH Investment Pte Ltd under the listed Yeo Hiap Seng company, is expected to realise a gain of approximately S$138.4mil.
This deal still has to meet some pre-conditions such as regulatory approvals. In a general offer scenario, the offeror needs to obtain acquire not less than 90% of the shares and this will enable the offeror to compulsorily acquire the shares held by dissenting shareholders.
While some of us may be disappointed that a local grown company is being acquired by a Dutch company, it may perhaps be advantageous for Super Group to go global and derive further synergistic benefits by being part of a larger group.
Super Group will be added to the growing list of companies delisting from Singapore Stock Exchange. A few delisting happened over the past two years were Neptune Orient Lines, OSIM International, Sim Lian Group, SMRT, STATS ChipPAC, Tiger Airways Holdings, LanTroVision (S), Select Group, Popular Holdings, Kreuz Holdings, and Eu Yan Sang International.
(source: SGX announcements, Capital IQ, Super Group)
Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author(s) involved in the writing of this piece does not have any current vested interest of the company. If you require expert financial or other assistance or legal advice, a competent professional should be consulted.