Aurora Dividend Income Trust says it will make a $19.6 million all-scrip takeover bid for Yowie Group, saying "decisive action" is required to turn around the Perth confectionary and publishing company.
The moves comes nearly three weeks after Keybridge Capital abandoned its bid for Yowie after an earnings report it called disappointing.
Aurora said it was offering the equivalent of 9.0 cents per share in unlisted units of ADIT shares, a 16.8 per cent premium to Yowie's closing price on Friday.
"For some time, Aurora has held significant concerns regarding the financial performance, leadership and corporate governance of YOW," Aurora said.
"The latest quarterly report ... clearly demonstrated that YOW management are not closer to turning around the business, with deteriorating sales performance and a net cash outflow of $US1.787 million."
Keybridge abandoned its bid for Yowie after that quarterly report, citing the 50 per cent decline in operating revenue, among other things.
Yowie management didn't immediately return a voicemail and an email left by AAP.
Aurora said its bid "potentially provides YOW shareholders with a value accretive exit strategy".
The bid would allow YOW shareholders to redeem their ADIT units off-market for cash, Aurora said.
Aurora currently holds a 12.24 per cent interest in YOW.
Another 30 per cent of shareholders need to accept the bid, at a minimum, by mid-August for it to take effect.
Yowie licenses its characters to several companies, outsourcing the production of collectible chocolate-covered toys as well as books and cartoon webisodes.
At 1409 AEST, Yowie shares were up 0.1 cents, or 1.3 per cent, to 7.8 cents.
