Click here or enter your email address below to access the stock code, 3,500-word analysis and founder interview. Bega has a long and rich history in Australia and is well known for its variety of cheeses, peanut butter, vegemite and other dairy products. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. Customer Sales and Service. The company made a series of acquisitions over the years and officially became a company in 2008 and listed on the ASX in 2011. Click here now to get the report. This article contains general investment advice only (under AFSL 400691). ASX-listed dairy company Bega Cheese will purchase Lion Dairy and Drinks from Japan's Kirin for $534 million. ... ASX … Please read our Terms and Conditions and Financial Services Guide before using this website. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. Investors have been buying the company’s shares this morning after it completed the underwritten institutional placement and the institutional component of its 1 to 4.5 pro-rata accelerated non-renounceable entitlement offer. The recent company restructure and ERP implementation will allow us to integrate this Acquisition and take advantage of the various synergies and growth opportunities across domestic and international markets.”. Please read our Terms & Conditions and Financial Services Guide before using this website. Around 65% of Bega’s revenues are generated domestically. That means, the information and advice does not take into account your objectives, financial situation or needs. X. X. X. X. This ASX small cap is revving higher today, Better buy: Temple & Webster (ASX:TPW) vs Nick Scali (ASX:NCK), Why I recently bought NextDC (ASX: NXT) shares. Lion D&D Customer Service. The sale of the Lion Dairy and Drinks business to ASX-listed food and dairy company, Bega Cheese, has been well received by the company’s largest supplier group, Dairy Farmers Milk Cooperative (DFMC). At the time of writing, the food company’s shares are up 10% to $5.57. PRINT THIS PAGE. This will allow the company to push ahead with its plan to purchase Lion Dairy & Drinks for $534 million. Our top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169. Bega Cheese has raised approximately $284 million at a 9.1% discount of $4.60 per new share. This is partly due to drought conditions easing, however, it’s mostly the result of COVID-19 disruptions, which affected our export market by reducing consumer spending levels and lowering consumer confidence in many overseas economies. On the ASX, Bega Cheese will buy Lion Dairy & Drinks for $534 million and substantially bolster its product range. Bega said its purchase includes milk, cream, juice and yoghurt products under brands such as Dairy Farmers, Pura and Yoplait. Bega Cheese shares emerging from a trading halt after Thursday’s confirmation it was buying Pura Milk owner Lion Dairy and Drinks, and jumped 7.12 per cent to $5.42. In addition to this, Lion Dairy & Drinks has Australia’s largest national cold chain distribution network supplying food service and convenience stores. Find the investing style that's right for you. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer … While the NXT share price chart over the past couple of months hasn’t looked fantastic, compared to some other technology shares, I saw this as an attractive buying opportunity. Bega told shareholders today it expects the deal to be completed at the end of January 2021. An easy and convenient way to place your orders online Sign in. The Motley Fool Australia operates under AFSL 400691. By clicking this button, you agree to our Terms of Service and Privacy Policy. Why Zip (ASX: Z1P) shares were on watch Wednesday, Here’s why the Smartgroup (ASX:SIQ) share price is going nuts. One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting... Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX. Unsubscribe anytime. View today’s LIO share price, options, bonds, hybrids and warrants. Bega Cheese (ASX:BGA) has entered into a binding agreement to acquire Lion Dairy & Drinks Pty for $534 million. It will now push on with the retail component of the entitlement offer, which aims to raise a further $117 million. The acquisition is expected to generate significant synergies. For a limited time, The Motley Fool Australia is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50. LDD procures approximately 825m liters of milk equivalent and 50m kilograms of fresh fruit from approximately 280 farmers and 85 fruit growers annually. Commonwealth Bank of Australia (ASX:CBA) shares are rising, is it time to jump on the major ASX bank? The sale of Lion Dairy and Drinks is entering the home straight. .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla {background: #fff7c4;} aside section .fool-ecap-id-19.fool-ecap-type-vanilla h3 {font-size: 1.6em;} p.ecap-disclaimer {font-size: 0.6em!important;}div.fool-ecap.fool-ecap-id-19 form {position: relative;text-align: center;margin: .2em 1em;}.fool-ecap.fool-ecap-id-19 p.ecap-disclaimer {margin-left: 0px;} .fool-ecap.fool-ecap-id-19 p.above-email{ margin-bottom: 0px;text-align:center;} div.fool-ecap.fool-ecap-id-19 p {color: #464646;}.fool-ecap-type-vanilla.fool-ecap-id-19 h3 {color: #404040;display: block !important;}.fool-ecap-type-vanilla.fool-ecap-id-19 .ecap-disclaimer{color: #484848 !important;}.fool-ecap-id-19.fool-ecap-type-vanilla h3.title{display:none !important;} .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla{ margin-bottom: 10px;}.fool-ecap-type-vanilla.fool-ecap-id-19 input[type="submit"] { margin: .5rem 0 .5rem !important;}.fool-ecap.fool-ecap-id-19 img {display: inline;}. The Bega Cheese Ltd (ASX: BGA) share price is soaring today following news the Aussie dairy company will acquire Lion Dairy & Drink. It also has a national manufacturing footprint comprising 13 sites. The Bega Cheese Ltd (ASX: BGA) share price has returned from its trading halt and is surging higher on Friday. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Patrick has a Bachelor of Business Management / Commerce from the University of Queensland. Bega Cheese (ASX:BGA) has entered into a binding agreement to acquire Lion Dairy & Drinks Pty for $534 million. Bega Cheese has agreed to acquire Lion Dairy & Drinks for $534 million. Financial Services Guide | Usually, you’d want to try and pick up shares in cyclical companies when they’re looking the most beat up. Our company is Australian owned. See how you can find out the name of this stock. The Lion Dairy and Drinks business, which includes major names such as Big M, Dare iced-coffee, Daily Juice and Pura Milk remains for sale after fellow beverages giant Coca-Cola Amatil confirmed that it will not be a buyer of the asset. We’ll never sell your email address. Bega Cheese (ASX:BGA) announces $534 million Lion Dairy & Drinks acquisition Motley Fool Australia Australia 5 hours Australia CFTC AUD NC Net Positions increased to … The Motley Fool Australia » Share Gainers » Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition, James Mickleboro | November 27, 2020 10:53am | More on: BGA. Authorised by Scott Phillips. Bega Cheese went into a trading halt pending a capital raising amid mounting speculation the Vegemite owner will buy Lion Dairy and Drinks from alcohol giant … Here’s why…. Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. Back office corporate functions will be integrated and optimised, and even more synergies will arise from enhancing its supply chain functions and manufacturing capacities. 3 weeks Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition – Motley Fool Australia The Motley Fool . Lion is an alcoholic beverage company that operates in Australia and New Zealand, and a subsidiary of Japanese beverage giant Kirin.It produces and markets a range of beer and cider in Australia, and wine in New Zealand and the United States through Distinguished Vineyards & Wine Partners. Lion Dairy & Drinks We produce, market and distribute some of Australia’s most iconic brands in milk, dairy beverages, yoghurt, juice and soy. Upon announcing the deal, Bega Cheese’s Chief Executive Officer, Paul van Heerwaarden, commented: “We are very pleased with the performance of acquisitions made in recent years which are achieving or exceeding our profit targets. In this FREE STOCK REPORT, Scott Phillips just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. Doc and his team have published a detailed report on this tiny ASX stock. After studying economics at university back home in the United Kingdom, James came to live in Australia and managed to land a job at an Australian fund manager. ASX-listed Bega Cheese is in the final stages of due diligence to acquire Kirin-owned Lion Dairy and Drinks. 15 Mar 2019 - Coca-Cola Amatil (ASX:CCL) released a press release today saying despite media commentary and speculation, they are not pursuing a bid for Lion Drinks and Diary. In addition to this, Lion Dairy & Drinks has Australia’s largest national cold chain distribution network supplying food service and convenience stores. The company made a series of acquisitions over the years and officially became a company in 2008 and listed on the ASX in 2011. Yesterday, Bega revealed it has entered a binding agreement to purchase Lion Dairy & Drink in a $534 million deal from Japanese company Kirin. I see this as a huge tailwind (if it remains unregulated), but what’s even better is that this Lion acquisition will result in fewer different buyers in the market for milk who would typically compete with each other for the best price. Instead, they engage with various suppliers (farmers) across Australia to purchase milk, which is then turned into various products. Admittedly, there is quite a bit of international exposure, but with over 40 different export countries, it doesn’t seem too concentrated on one particular area or country. Bridget Carter 10.16am: Bega Cheese buys Lion Dairy and Drinks. Bega Cheese (BGA) is set to snap up dairy giant Lion Dairy and Drinks (LD&D) in a half-billion-dollar purchase deal. The vertical integration, however, is where the significant cost savings will be driven from. The Smartgroup Corporation Ltd (ASX:SIQ) share price is up more than 10% after giving profit guidance. Image Source: © Kalkine Group 2020. Lion is looking to innovate in functional foods to improve the health of the nation and drive value growth in dairy. Enter your email below to receive his free report. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. Learn about investing with our Investing Education hub. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Lion Dairy & Drinks Portal. Bega will fund the deal through a combination of new and extended debt facilities, along with the proceeds from a $401 million capital raising. Get Started Investing He is a firm believer in making small financial decisions now, which will have a large, cumulative effect later on in life. Indicative offers for the $500 million-odd Lion Dairy and Drinks – which makes and sells milk-based drinks, yoghurts and juices – landed on Lion and adviser Deutsche Bank's desk a fortnight ago and the … In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. The sideways share price movement over the last few years has largely been the result of widespread drought across the country. Last year, Lion was intended to be sold to Chinese company Mengniu Dairy, however, the deal was terminated by the Australian government on national interest grounds. No gimmicks, just expert-proofed stock research and more. Your buying decision would therefore be based on your interpretation of where you think the company currently is in its cycle. The sale of the Lion Dairy and Drinks business to ASX-listed food and dairy company, Bega Cheese, has been well received by the company’s largest supplier group, Dairy Farmers Milk … Bega Cheese (ASX:BGA) shares rise on Lion Dairy acquisition. Picture: Kylie Else. Our Top 5 Stocks for Investors 50 or Older – NOW AVAILABLE! 1800 000 570 [email protected] Further improvements to pagination, filtering, and including year on announcements are coming. The information on this website is general financial advice only. Privacy Policy | Patrick takes a long-term outlook and searches for fairly valued, well-managed companies with a strong outlook for growth. So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! James is part of the CFA Institute’s Chartered Financial Analyst program and hopes it teaches him how to become an astute investor which allows him to help others with their own investing. Is it time to jump on CBA (ASX:CBA) shares? Here are the details. Indicative offers for the $500 million-odd Lion Dairy and Drinks – which makes and sells milk-based drinks, yoghurts and juices – landed on Lion and adviser Deutsche Bank's desk a fortnight ago and the race has entered its final furlong. I’ve looked past the valuation aspect for this one as I like the qualitative story of the company and this major acquisition. The addition of juice products from Lion (through brands such as Berri, Mildura and Just Juice) adds some diversification away from milk-based products, which can be cyclical based on supply constraints. 85 fruit growers annually bega has been around since 1890 and originally commenced as a cooperative! He hasn ’ t looked back since right for you and Privacy Policy 41 million per annum this primarily... Looking to innovate in functional foods to improve the health of the entitlement offer, which have. Appears to make a lot of sense and has not taken your personal circumstances into account your,... 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