Bega Cheese (ASX:BGA) to buy Lion Dairy & Drink for $534m

Company News

by Rachael Jones

Bega Cheese (ASX:BGA) has entered into a binding agreement to acquire Lion Dairy & Drinks Pty for $534 million.

In addition to the acquisition price, Bega expects to incur stamp duty and acquisition transaction costs of $42 million, capital raising and debt funding costs of $11 million, upfront transition costs of $21 million, additional transition and separation costs of $60 million.

The acquisition is expected to be complete by the end of January 2021.

All new shares offered under the capital raising will be issued at a fixed price of $4.60 per new share.

Shares in Bega Cheese Limited (ASX:BGA) are in a trading halt, last traded at $5.06.