Southport-based Retail Food Group, the franchisor of the Donut King and bb's cafe chains, has extended its offer for Brumby's Bakeries.
The takeover bid, under which RFG is offering Brumby's shareholders $3.40 per Brumby's share, will now close at 5pm on July 18, instead of next Wednesday.
The company said it had offered the extension because a number of Brumby's shareholders had indicated they would prefer to accept the offer in the next financial year – fiscal 2008.
"We wish to ensure that all Brumby's shareholders have every opportunity to maximise the value of the offer," RFG chief executive Tony Alford said. The extended offer period will give shareholders additional time to accept the offer post 30 June 2007, should they choose to do so."
RFG announced the off-market takeover bid for Brumby's on May 4 and the company's board gave its unanimous support for the offer, short of a better bid, on May 14.
As at 1700 AEST on June 26, RFG had gained 5,593,274 Brumby's shares, representing a stake in the company of 43.4 per cent.
The Brumby's directors, who currently control 37.12 per cent of the company, have indicated that they intend to accept RFG's offer in the new financial year.
Brumby's runs 321 outlets in Australia and New Zealand. RFG has 289 Donut King outlets and 71 bb's cafes.
Brumby's managing director Michael Sherlock, who has headed the company for seven years, is set to step down if the takeover is successful.
Mr Sherlock was part of a group known as BBS, which launched its own management-led buyout of the company, before recommending shareholders accept the higher offer from RFG.