Bellamy's Australia Ltd (ASX: BAL) shares are counting down their days on the S&P/ASX 200 (INDEXASX: XJO) ahead of a takeover by a Chinese dairy group.
The Aussie group provided an after-market update on its proposed acquisition by China Mengniu Dairy Company Ltd (Mengniu) yesterday.
Why are Bellamy's shares set to leave the ASX?
The Supreme Court of New South Wales has approved the proposed Mengniu acquisition of the group.
Bellamy's expects to lodge a copy of the Court orders with the Australian Securities and Investments Commission (ASIC) today.
Bellamy's shareholders are set to receive $13.25 cash per share for each share held on Tuesday 17 December.
That comprises $12.65 per Bellamy's share paid by Mengniu and a fully franked special dividend of $0.60 paid by Bellamy's.
What's the background behind the deal?
On 16 September, Bellamy's rocketed higher after receiving a $1.5 billion takeover proposal from Mengniu.
The group entered into a scheme of implementation deed under which Mengniu would acquire 100% of Bellamy's shares.
Mengniu's offer was also a significant 59% premium on its $8.32 per share valuation prior to 16 September.
Bellamy's shares closed at $13.23 per share in yesterday's trade and should remain at that mark given the $13.25 payout from the deal.
What about the other Aussie dairy companies?
A2 Milk Company Ltd (ASX: A2M) shares slumped 3.92% lower on the ASX yesterday after the shock exit of its Managing Director and CEO.
Jayne Hrdlicka will exit the role and former CEO Geoffrey Babidge will take the reins.
While Ms. Hrdlicka said the demands of the role were behind the decision, investors headed for the exit in Monday's trade.
a2 Milk shares are still up 34.33% this year despite yesterday's slump to trail only Bellamy's shares amongst the dairy companies.
Bubs Australia Ltd (ASX: BUB) edged 0.50% higher yesterday in a more positive day and has more than doubled since the start of 2019.
