BWX Ltd [ASX: BWX] is the personal care business behind the popular commercial skincare brand Sukin Organics, and various other ‘green’ brands on the market.
Its share price rocketed this morning after the group received a large takeover offer from CEO John Humble, Finance Director Aaron Finlay and Bain Capital Private Equity.
What are the Details?
Bain Capital’s buyout offer is for $6.60 cash per share, or 75% of shares in scrip for the newly acquired entity with the remaining 25% paid in cash. An offer of $6.60 could be considered a very attractive opportunity for shareholders. This number sits close to a 50% premium to the current share price of $4.41.
BWX said on Monday that Bain Capital are essentially making a $603 million offer.
While the natural beauty titan is in the process of considering and evaluating the proposal, an ‘Independent Board Committee’ (IBC) has been consulted. For now, BWX have recommended that shareholders avoid taking relative action.
Judging from this morning’s activity on the stock exchange, the market’s excited.
What’s next for BWX?
Short sellers will be kicking themselves. And BWX has a monumental task on its hands.
‘The main interest for us is the trading performance of the business…our share price has taken a hit since the half-year results and this is a fairly opportunistic approach,’ said BWX Independent Director Ian Campbell.
The company’s shares, which hit an all-time high in January at $8.19, saw a sharp drop to $4.96 after reporting a 34% fall in its half-year net profit in February. At time of writing, the share price is nearly $6.00.
News of the buyout offer aside, green beauty appears to have a bright future. It appears that an increasing number of female consumers are starting to focus on wellness, while the natural and organic beauty market has been predicted by market research companies to reach US$22 billion by 2024.
Could this be your next investing opportunity? It always pays to stay tuned.
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