Pacific Equity Partners has Offered Patties Foods Ltd of Australia an A$230 million Takeover Bid
Pacific Equity Partners has Offered Patties Foods Ltd of Australia an A$230 mill

On Monday, Patties Foods Ltd, the Australian packaged food supplier said that Pacific Equity Partners has offered it an A$230 million takeover bid.

The offered bid was a premium of twenty four percent to Patties close on Friday. The cash offer was priced A$1.65 a share. Patties said, PEP, the equity firm also offered a possibility of an "unquoted equity alternative".

Patties makes frozen sweet and savory like pies, cakes, pastries, crumbles and sausage rolls. A frozen berry product recall led to a twelve percent decline in Patties' net profit in the first half which the company posted in February.

Last year, concerns of a hepatitis A breakout forced the company to recall a frozen mixed berries product. However, later the berries that were suspected to be carrying the disease were cleared in a lab test.

Patties said that the discussions were at their advanced stage and urged shareholders to support the deal.

In a statement, Chairman Mark Smith said "The board remains confident in management's plans for growth in the core brands and the business is experiencing strong momentum."

This year, the shares of the company have scaled 16.7 percent.