Vitasoy (345.HK) Proposed acquisition of 49% of Vitasoy Australia
- Vitasoy (345.HK) has announced it intends to acquire the remaining 49% stake in Vitasoy Australia for an undisclosed sum, which will result in full ownership in Vitasoy Australia. If successful, the acquisition is expected to complete by end-October.
- The 49% stake was previously held by National Foods, a subsidiary of Bega Foods. National Foods was previously held by Lion Dairy and Drinks, who had divested its dairy related business in 2021.
- Vitasoy Australia is one of the leading plant-based producers in Australia since its incorporation in 1999, with offerings such as plant-based milk, beverages and yogurt sold in Australia, New Zealand, and overseas markets.
- Australia & NZ operations previously accounted for 28%, and 9% of sales and EBIT in FY21, prior to disruptions of China operations. If materialized, we estimate an earnings upside of 3%/6% in FY23F/FY24F.
- As of Mar’22, the Group holds a net debt position of HK$232m.
- Our last rating was a HOLD.