No pie in the sky offer for Patties

A PRIVATE equity firm has made a $232 million takeover offer for Bairnsdale-based Patties Foods.

The board of Patties Foods on Wednesday  recommended the takeover proposal from private equity firm Pacific Equity Partners.

Patties chairman Mark Smith had said the directors reached the conclusion after extensive negotiations with PEP.

“Whilst the board remains confident in management’s plans for growth and innovation, the scheme represents an attractive value for shareholders,” he said.

PEP has offered to pay $1.65 for each Patties Foods share, including a special dividend of $0.25 a share.

 Shareholders have the option to receive the consideration in cash, through shares of a newly-incorporated acquiring company, or a combination of both. 

Pacific Equity has offered to buy 100 per cent of the company at $1.65 a share, in a deal worth almost $230 million. 

Patties shares surged 17 per cent to $1.57 in trading on Monday.

Patties Foods has been listed on the Australian Stock Exchange since November 2006.