Asahi makes $129.3m bid for Charlie's juices

Stefan Lepionka, co-founder of Charlies. File photo

Shareholdings associated with Charlie's founders Marc Ellis and Stefan Lepionka are worth about $18 million each under the takeover bid for the beverage company launched by Japanese giant Asahi.

Asahi Group Holdings is offering 44c for each Charlie's share, valuing the company at $129 million. The bid price is higher than the shares have traded for since being listed in 2005. On Friday they closed at 28c.

Asahi already has 52.17 per cent approvals, and intends to take full control, requiring at least 90 per cent to achieve a takeover.

Charlie's board of directors has recommended shareholders accept the deal unless a better offer eventuates or the independent adviser's report says the price falls short of the valuation range.

Lepionka, who is chief executive, said it had been 12 years to the day since he, and partners Ellis and Neal, first began squeezing oranges.

"The international beverages business is a tough, competitive game and we have played the game hard and well over the last decade," he told a news conference, adding that the company had fielded other offers over the last two or three years.

"Our goal was to achieve a $100 million business and I guess we have overachieved that today."

Charlie's will be kept as a stand alone business, with Lepionka staying on as chief executive.

That comes as the juice-maker flags increased sales and earnings for the 2012 financial year on the back of increased penetration in the Australian market.

It affirmed its 2011 earnings, with net profit of between $2.2 million and $2.5 million on sales of between $48 million and $50 million in the 12 months ended June 30.

In the past year, Charlie's has managed to launch its products in Australian supermarkets Coles and Woolworths, forcing rapid growth in sales across the Tasman.

It's also gained footholds in the Hong Kong and South Korean markets. As part of the deal, co-founder and chief executive Stefan Lepionka will stay in his role in charge of the company.

Lepionka said the deal will take Charlie's to the "next level" and benefit from investment from the Japanese company.

Asahi's David Begley said said there would not be any major changes made to Charlie's as a result of the purchase.

"Our plan is to continue to run Charlie's very much as it as it is run today, and then to support its growth through the technical ability that we have got, and through the extended reach that we have outside of of New Zealand," he said.

"We would love to see Charlie's being twice the size in five years time as it is today."

Charlie's will be its first foray into premium fruit juice in Australasia.

"Charlie's complements the Schweppes Australia business very well," he said. "It particularly enhances our position in the beverage segments as well as providing a foothold in the New Zealand market."

Asahi owns the Schweppes brand in Australia, but the local Schweppes brand is controlled by Coca-Cola.

The sale is conditional on Overseas Investment Office approval, and contingent on Asahi achieving a full takeover. If successful, Asahi will de-list Charlie's from the local stock exchange.

Charlie's stock was the second-best performer on the NZX last year, surging 144 per cent. So far this year, it's gained 44 per cent, trading at 28 cents on Friday.

- BusinessDesk / Jamie Gray / NZPA