Long-suffering shareholders in Moa will be relieved that the craft beer brand is holding strong following its proposed acquisition of the Savor group of restaurants in late December, which promised to take the group into sustainable profitability. The company, which was listed in 2012, has managed to hold on to gains made since the purchase was first announced in late December last year – up to 50c from 41c before the deal was announced.
“There could be no better partner to build an additional brand presence for Moa than Savor Group,” Moa executive chairman Geoff Ross said at the time. “Whilst we have seen strong growth in supermarkets a vital channel for us to add is bars and restaurants. These will add greater volume, present our brand to the right audience and create a true Moa experience. We not only see the opportunity to grow the Moa brand but also to further build hospitality venues together.”
Moa has had a hard time since going public. The company posted a loss of $2.1 million in the last financial year and a $1.2 million loss in the six months to September. Moa said that the deal with Savor would triple its revenue and give the company sustainable profitability.
The deal is conditional on shareholder approval, confirmation of finance and receipt of third party consents in late February. A shareholder vote will likely be in early February, which will then be followed by a rights issue. The deal is planned to be funded by a mix of bank debt, new equity and the rights issue and aims to settle by the end of February.
