Oliver's Real Foods gets a $25m takeover offer from an ex-Caltex suitor

Only days after British retail franchisee EG Group was rejected by large cap Caltex (ASX:CTX),it is now courting healthy fast food retailer Oliver’s Real Foods (ASX:OLI).

EG Group has made a 10c-per-share offer for Oliver’s, valuing the deal at $25m or a nearly 54 per cent premium over its last traded share price prior to the news.

While the offer remains conditional and there’s no guarantee it will proceed, the company could have rejected EG Group outright.

Instead it elected to engage with the suitor and informed shareholders this morning. Oliver’s said engagement was in the best interest of shareholders, but that the deal was still subject to regulatory, board and shareholder approval.

Oliver’s listed on the ASX back in 2017 but struggled for most of its first two years after disappointing financial results.

However, the company has turned around after closing inefficient stores, surviving a period of record low cash flow due to founder Jason Gunn lending the company money, and trading strongly this financial year.

Additionally, WiseTech (ASX:WTC) investor Michael Griegg bought 7 per cent of the company in August last year.

While its earnings for the first half of the financial year amounted to just $44, it was a $10.3m improvement from the same period last year.

Oliver’s shares hit record lows early last year but have steadily improved ever since despite the company shedding over 30 per cent of its peak value in the last six weeks due to the coronavirus-inflicted market sell off.