The Bellamy's Australia Ltd (ASX: BAL) share price could be one to watch this morning after resolving 2 shareholder class actions.
What did Bellamy's report yesterday?
Bellamy's settled 2 outstanding shareholder class action proceedings against it.
The settlements, which totalled $49.7 million inclusive of interest and costs, are subject to Federal Court approval.
Bellamy's payment is fully insured and the Aussie dairy group did not admit any liability. The payments will have no impact on the company's financial results.
The settlements were a "commercial decision" made in the "best interests" of Bellamy's and its shareholders.
What could move the Bellamy's share price?
The reality is that the Bellamy's share price is unlikely to move too much this morning.
The Aussie dairy group's takeover by China Mengniu Dairy Company Limited (Mengniu) received Foreign Investment Review Board (FIRB) approval in mid-November.
Mengniu made a takeover bid on 16 September at an offer price of $13.25 per share. That represents a whopping 59% premium to the Bellamy's share price on 13 September.
Given the significance of the takeover deal in determining the company's intrinsic value, I'd expect to see minimal movement on the ASX today as a result of the settlement news.
Bellamy's shares are currently trading at $13.17 per share ahead of the Chinese company's takeover.
What other infant formula options are there on the ASX?
You don't have to be a Bellamy's shareholder to cash in on the infant formula boom in China. A2 Milk Company Ltd (ASX: A2M) shares have been consistent performers on the ASX for years, while the Bellamy's share price has rocketed higher in 2019 and so have Bubs Australia Ltd (ASX: BUB) shares.
Bubs Australia recently announced a key strategic deal with Chinese retailer Alibaba, while a2 Milk remains the incumbent in the Chinese market.
