United Malt: Corporate Action - Last Drinks As Takeover Set To Proceed

We recommend shareholders vote in favor of Malteries Soufflet’s proposed takeover of no-moat United Malt UMG. This is a great outcome for investors. The AUD 5 offer represents a 45% premium to the United Malt share price prior to the indicative proposal being announced in March 2023, and a 25% premium to our stand-alone valuation. As outlined in our note published Aug. 7, 2023: “United Malt: We Think the Proposed Malteries Soufflet Takeover Is a Done Deal,” we think the deal proceeding is near certain, and our fair value estimate is unchanged at the bid price of AUD 5 per share. The deal has unanimous director support and there is a negligible chance of interlopers, given the strategic role United Malt serves to Malteries Soufflet.

The scheme meeting is scheduled for Oct. 12, 2023. If the scheme proceeds, shares will be suspended from trading at the close of trading on the effective date Oct. 17, 2023, with implementation on Nov. 15, 2023.