Management Buy-Out Offer For Brumby’s

2 March 2007

Management Buy-Out Offer For Brumby’s Gets Recommendation Over RFG

The syndicate of Brumby’s CEO and managing director Michael Sherlock, director Marcus Barlow and general manager and company secretary Steve Brown (BBS) today welcomed a decision by the Board of Brumby’s Bakeries Holdings Limited (BSX:BBH) to recommend its offer for the company.

The Board has previously recommended in December an offer to acquire Brumby’s by the Retail Food Group (RFG).

However, a subsequent offer in January by BBS was 11.15 cents higher than the RFG offer.

Mr Sherlock said the Board’s decision to recommend the BBS offer was not only in the best interests of the shareholders but also Brumby’s valued franchisees.

“The Board previously indicated it was only recommending the RFG offer in the absence of a better or higher offer. The Board has had a chance to compare the offers and made its decision,” Mr Sherlock said.

“The BBS offer ensures that the successful management team that has guided Brumby’s outstanding performance in recent years will remain in place.”
BBS offer is to acquire 78.98 per cent of the company held in non-associated shareholder’s hands for $2.80 cash for each BBH share and a fully-franked dividend of 10.883 cents per share.

The syndicate members look forward to working with the Board to expeditiously ensure BBH’s shareholders have an opportunity to vote on the proposed scheme as soon as possible.

ENDS

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