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HelloFresh takeover bid for Youfoodz

Ready-to-make meal provider Youfoodz soared 77% on Tuesday after it announced a buyout offer by German-based global giant, HelloFresh.


It is proposed HelloFresh will acquire 100% of Youfoodz for 93 cents per share in cash, valuing the company at approximately $125.3 million.

Youfoodz, which was started in 2012 and delivers ready-to-make meal packages to 850,000 customers, listed on the ASX just eight months ago at $1.50 per share with an enterprise value of $165 million, but shares quickly fell below $1.


Board & major shareholder support


The Youfoodz Board said it has carefully considered the offer and concluded that it represents an opportunity for Youfoodz shareholders to realise certain value with respect to their investment at a material premium.


At 93 cents per share, the offer represents a premium of 82% to the Youfoodz closing share price of $0.51 on July 12 and a 109% premium to one-month VWAP.

The company noted that HelloFresh represents a strong strategic partner for Youfoodz, combining Youfoodz strength in developing and manufacturing ready-made meals with HelloFresh’s expertise in supply chain management, technology and direct-to-consumer marketing.

The Youfoodz Board said it unanimously recommends that Youfoodz shareholders vote in favour of the offer in the absence of a superior proposal, subject to an independent expert concluding the offer is in the best interests of shareholders.


Major shareholder RGT Capital owns 57.4% and also said it will vote for it in the absence of a better offer.


The deal is expected to be finalised in November following a scheme booklet going to Youfoodz shareholders in September 2021, and all conditions being satisfied.