Latest news with #Keybridge
Yahoo
09-05-2025
- Business
- Yahoo
Yowie launches takeover of shareholder Keybridge Capital
Australian confectioner Yowie Group has launched an off-market takeover bid for all the issued fully paid ordinary shares of its largest shareholder Keybridge Capital. In a filing with the Australian Securities Exchange (ASX), Yowie said the proposal is structured as an all-scrip bid, offering one Yowie share for each Keybridge share on issue. The proposed transaction is subject to a minimum acceptance of 50.1% of Keybridge shares, Yowie shareholder approval, and other regulatory clearances, according to an ASX filing today (9 May). The latest announcement comes shortly after a significant legal development involving Melbourne-based Keybridge. On 8 May, the New South Wales Supreme Court of Appeal dismissed an appeal by its executive Nicholas Bolton, affirming the legitimacy of the board installed at the company's general meeting on 10 February. The court's decision, announced in a separate ASX filing, marked the end of Keybridge's period of external administration. Keybridge entered administration on 9 February, following Yowie's demand for repayment of an outstanding A$4.6m ($2.9m) loan by 7 February. The investment firm also cited opposition to new fundraising efforts from its own investor, publicly-listed WAM Active, as a reason for entering administration. WAM had repeatedly gone through Australia's courts to prevent Keybridge from securing new finance. In its administration notice on 10 February, Keybridge said it had been attempting to raise new funds since October last year. WAM's latest attempt to block new financing arrangements was suspended by the Supreme Court of New South Wales on Monday. Keybridge owns circa 78% of the Australia-based chocolate maker after increasing its holding in December 2023. The investor held 23% of the novelty chocolate business's stock back in 2020 before it launched a takeover approach in December 2023, when Keybridge was already the largest shareholder. A deal was finalised in December, whereby Keybridge took its holding to 78.359%. In May 2024, Bolton, a managing director at the investment firm, was appointed as CEO of Yowie. Recent developments have also brought structural changes at Keybridge. Bolton's executive roles have been suspended pending an internal investigation. Additionally, Jesse Hamilton has been appointed as company secretary, replacing John Patton. Yowie, headquartered in Perth in Western Australia, markets its namesake products in Australia and the US to 'promote learning, understanding and engagement with the natural world', featuring Yowie characters such as Rumble and Squish. It outsources production and distribution. "Yowie launches takeover of shareholder Keybridge Capital" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-04-2025
- Business
- Yahoo
Yowie US tariffs on China will bring 'significant' impact to costs
Australian confectionery company Yowie Group has warned that newly implemented US tariffs on Chinese goods could will take a hit to its costs. In a market update on the ASX yesterday (7 April), the group said the 54% tariff on Chinese imports to the US 'are likely to have a significant impact on Yowie's cost base". A 10% baseline tariff for all US imports came into effect came into effect over the weekend, with the additional tariffs due to be effective for a long list of countries including China, the UK, Japan and EU, from tomorrow (9 April). In response to the tariffs, Yowie, which markets its "surprise-inside-chocolates" in the US and Australia, said it was exploring alternative sourcing options, including potential toy manufacturing within the US. However, it cautioned that 'there can be no certainty that such arrangements can be implemented'. In February, Perth-based Yowie said it was re-assessing its supply chain due to planned US tariffs on imports from both Canada and China. While the company manufactures its US-distributed products domestically, it sources the packaging and chocolate for its products from Canada and the toys for its chocolates from China. According to its latest filing, Yowie currently spends around US$2.5m annually on toys sourced from China. In addition to the US tariffs impact, the business also warned of a $1.9m hit to annual revenue due to a 'major customer' reducing shelf space as a result of changes in category layouts. It said the reduction in "store facings" was "effective immediately". Yowie did not name the retailer or specify the affected market. In its second-quarter fiscal 2025 revenues were $3m, down from $3.2m a year ago. US sales fell 33% to $2.1m, while Australian sales increased to $0.9m from $0.1m. The ASX filing also included updates on developments related to Yowie's largest shareholder, Keybridge, which entered administration in February. Yowie is a major creditor of Keybridge, with a debt of approximately A$6.7m. A deed of company arrangement has been proposed by Nicholas Bolton, managing director at the investment firm and Yowie CEO since December, the group said. Under the proposed deed, Yowie expects to receive 100 cents in the dollar within 21 days of implementation, pending creditor approval. Separately, WAM Active—a Keybridge stakeholder—is proposing a loan to fund the repayment, although the details and funding capability remain uncertain. Yowie said it 'will continue to assess the proposals and will update shareholders as further information becomes available'. The business also announced several leadership changes. Leo Valle, Yowie's North America country manager, will retire at the end of the month. Meanwhile, Diesel Schwarze and Daniel Agocs have been appointed as independent non-executive directors, since 1 April. Schwarze and Agocs bring experience in brand storytelling, logistics, manufacturing, and sales to support the company's consumer-focused growth and navigate global supply chain challenges, the company said. Yowie added the appointments would look 'to enhance governance, in particular in relation to resolving its recovery of a very material debt from a related party, Keybridge'. "Yowie US tariffs on China will bring 'significant' impact to costs" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
