Stock in S&P/ASX 200 Index (ASX: XJO) maltster United Malt Group Ltd (ASX: UMG) has been put into the freezer today as the company prepares to react to what looks like a takeover proposal.
The share will remain frozen until it reveals the details of its apparent suitor and their bid or the market opens on Wednesday, whichever comes soonest.
The United Malt share price last traded at $3.44.
Let's take a closer look at what's going on with the ASX 200 consumer staples share this week.
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ASX 200 share frozen amid takeover approach
The United Malt share price has been halted amid "a potential change of control transaction" involving the company.
And the suitor behind what appears to be a takeover bid? That's broadly reported to be European peer Malteries Soufflet.
Malteries Soufflet was itself acquired by agriculture group InVivo in 2021, with global investment firm KKR buying a significant minority stake alongside Bpifrance and Crédit Agricole Group around the same time.
United Malt became the world's fourth largest independent commercial maltster on demerging from GrainCorp Ltd (ASX: GNC) in 2020.
The demerger was intended to create shareholder value by splitting the two businesses into separate ASX 200 agribusiness companies.
However, the United Malt share price has disappointed since. The stock has fallen 16% since it listed. Though, it's jumped 21% since hitting an all-time low of $2.81 in October 2022.
As of Friday's close, the maltster boasts a market capitalisation of around $1 billion.
Goldman Sachs is advising the company's suitor while Macquarie provides advice to United Malt, according to reporting by the Australian Financial Review.
United Malt tipped financial year 2023 to bring a "material increase in earnings" on posting its full-year results in November 2022.
Its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 23.2% last fiscal year to $105.9 million. Meanwhile, its revenue lifted 13.9% to $1.4 billion on the back of higher barley prices.
United Malt share price snapshot
The United Malt share price has underperformed the ASX 200 in recent months.
The stock has fallen 1.4% since the start of 2023. It is also currently 9% lower than it was this time last year.
For comparison, the ASX 200 is trading flat year to date and has dropped 6% over the last 12 months.
