Vita International acquires remaining shares of Vitasoy Australia

Vita International has exercised its right to acquire the remaining 49% of the issued share capital in Vitasoy Australia that is currently held by National Foods. 

According to a document on Hong Kong Stock Exchange, the Board of Vita International said that the company served an exercise notice on National Foods to exercise the call option. In the notice, Vita International specified A$27.5 million (approximately HK$137.5 million) as the fair value. 

If the fair value is not accepted by National Foods and no agreement can be reached by the parties on the value, an expert shall be appointed and the fair value determined by the expert will be final and binding on both parties. 

MARKETING-INTERACTIVE has reached out to Vita International for additional information. 

Upon the completion of the exercise of the call option and the acquisition by Vita International, Vitasoy Australia will become an indirect wholly owned subsidiary of the company. The company currently expects that closing of the acquisition will take place around the end of January 2023.

National Foods is a substantial shareholder of Vitasoy Australia, being an indirect non-wholly owned subsidiary of the company, while Vitasoy Australia is a joint venture between Vita International and National Foods.

It is principally engaged in the production of a wide range of plant-based milk, beverages, and yoghurts for sale in Australia, New Zealand, and overseas markets.  Currently, 51% of the issued share capital of Vitasoy Australia is owned by Vita International and the remaining 49% of the issued share capital is owned by National Foods.  

Back in December last year, Vitasoy's profit dropped significantly due to the fall in Mainland China sales during the first half of the financial year ended 30 September (H1 2021). This was coupled with the reduction of pandemic-related subsidies from governments. More specifically, profit from Vitasoy's operations dropped by 95% to HK$32.8 million as a result of the fall in Mainland China sales, exacerbated by the reduction of pandemic related subsidies from governments as COVID-19 was gradually brought under control. Its profit was also impacted by the reduction in advertising and promotion spending versus the same period last year.

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