In late August, food giant JBS Australia, a subsidiary of Brazilian parent JBS, launched a $40million-$50million bid for a 50.1% stake in Scott.
The bid is at $1.39 per share, which is only a 6c premium on the $1.33 share price at the time, and Scott's board is yet to release any independent valuation and formal recommendation, on the offer.
Scott shares were trading down slightly yesterday, at $1.40.
Yesterday, Scott chairman Stuart McLauchlan said the High Court had given approval for the offer to be put to shareholders and documents on the scheme of arrangement were to be sent to shareholders on October 30.
Last week Scott released its full year to August result. Revenue was up 20% to $72.3million and profit before tax up 91% to $8.1million.
Last year's full dividend of 8c per share was maintained.
The takeover bid includes a placement of 10million new shares to JBS, an offer to purchase shares from existing shareholders and a 1 for 8 non-renounceable rights issue, plus, if required, the placement of further shares to JBS to get it to the 50.1% controlling stake it seeks.
The bid has the potential for JBS to inject a further $20million to $50million capital into the 102-year-old company, after purchase costs and debt payments.
Scott's Dunedin plant concentrates on meat and dairy industry robotics and mining sector analysis equipment, while its Christchurch plant maintains the historical and mainstay business of manufacturing automated production lines.
