Brumby’s Bakeries has recommended an offer by its management team to take over the breadmaker after its $28.5 million bid became unconditional.
The bid by BBS Pty Ltd, which includes Brumby’s chief executive Michael Sherlock who holds around 21 per cent of the breadmaker, followed an initial offer by the Retail Food Group (RFG).
Mr Sherlock said the next move would have to come from RFG, the company behind the Donut King brand.
“It’s like a game of poker, they can throw their hand in or raise us,” Mr Sherlock said.
The BBS offer to the 300 shareholders of the Bendigo Stock Exchange-listed Brumby’s is for $2.80 a share for the remaining 79 per cent of the company and a fully franked dividend of 10.88 cents.
On December 18, Brumby’s entered into a merger implementation agreement with RFG that offered $2.68 a share along with the dividend.
RFG will earn a break fee of $360,000 if it pulls out of the bidding for Brumby’s.
Mr Sherlock said the decision by the Brumby’s board on Friday was in the best interests of shareholders and franchisees.
“The BBS offer ensures that the successful management team that has guided Brumby’s outstanding performance in recent years will remain in place,” he said.