ASX company agrees to big stake in Maggie Beer
ASX-listed company Primary Opinion has announced an agreement to take a significant stake in Barossa-based food business Maggie Beer Products, in a move it says will grow opportunities for exports.
Primary Opinion, a business networking company, told the ASX today it aims to take a 48% equity stake in Maggie Beer Products for $15 million.
Maggie Beer Products is a privately-owned business owned 100% by entities associated with Barossa food legend Maggie Beer and her husband Colin.
The company is well-known for its premium food products, including pate, pastes, ice-cream, soups, stocks, verjuice and non-alcoholic drinks.
In a statement to the ASX, Primary Opinion said it had “agreed to acquire” the stake through a transfer of existing shares and the issue of new shares by Maggie Beer Products.
Primary Opinion chairman Tony Robinson would be appointed a non-executive director of Maggie Beer Products after the completion of the acquisition.
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“It is anticipated that as a result of this transaction, MBP will have approximately $10.0m in gross proceeds to deploy over time to grow and expand its business,” Robinson said in a statement.
“Primary Opinion believes that by providing capital and expertise to MBP, this iconic business will be in a strong position to grow domestically and explore export opportunities for its existing product suite as well as accelerate new product development.”
Primary Opinion wants to raise up to $25 million to fund its investment in MBP as well as explore other opportunities in the food and beverage industry.
The deal is subject to shareholder approval at a meeting expected to be held in June.
