AAP Finance

Bellamy’s investors back China buyout

By AAP Newswire

Bellamy's investors have overwhelmingly approved a proposed $1.5 billion takeover by the China Mengniu Dairy Company.

Thursday's scheme proposal in Melbourne was supported by 99.23 per cent of shareholder votes - representing 82.88 per cent of Bellamy's investors - with the company now set to apply to the Supreme Court of NSW for orders approving the deal next week.

If the takeover clears that hurdle, the scheme is expected to be implemented on December 23.

Bellamy's shares will be transferred to Mengniu's subsidiary for $13.25 cash per share, inclusive of a fully franked special dividend of 60 cents.

The company's stock had climbed by 0.76 per cent to $13.24 by 1216 AEDT after the vote, having surged by more than 50 per cent in one day after the Mengniu proposal was revealed in September.

Last month Treasurer Josh Frydenberg backed the Foreign Investment Review Board's view that the proposed acquisition by Mengniu was not contrary to Australia's national interest.

He did however impose conditions on the deal, including that majority of the Bellamy's board of directors will have to be Australian citizens and living in the country.

The Treasurer also requires the Chinese buyer to invest at least $12 million in infant milk formula processing facilities in Victoria.

Bellamy's board had unanimously recommended shareholders vote in favour of the scheme, but denied it had anything to do with fast-tracking Chinese regulation to allow expansion in the country.