Bega Cheese’s stock has jumped 3 per cent on news Andrew Forrest’s private investment fund has shelled out more than $100 million to buy a 6.61 per cent stake.
Tattarang AgriFood Investments is now a substantial shareholder in the dairy company after buying more than 20 million shares for $108 million over six weeks between November 10 and December 29.
Stock in the dairy and food company touched a high of $5.51 in midday trade on Thursday and was up 2 per cent at $5.44 in late afternoon, following the group’s announcement of Mr Forrest’s purchase to the Australian Securities Exchange.
after it posted guidance that disappointed investors despite this financial year’s earnings being as much as 50 per cent ahead of fiscal 2021, sitting between $195 million and $215 million.
The market was hoping for a strong rebound from the company after a tumultuous year marked by lockdowns, the supply chain crunch, and costs related to testing of factory workers.
In its update last week Bega blamed lockdowns for “extensive and significant” market disruption in food service channels.
The pandemic-induced pressures on the company also resulted in “significant operational disruption”, including factory shutdowns, major changes to operations and logistics scheduling, increased safety and testing regimes, major cost increases and shortages across the supply chain.
The $1.65 billion company also blamed the “structural change in the Chinese infant and toddler dairy nutritional market” for the bearish guidance.