South African-based Metcash Trading announced on Monday it intended to make an Aus$846-million dollars ($660-million) off-market takeover offer for the Australian operations of Foodland Associated.
Metcash said that under the offer, Metcash would acquire only the Australian business of the Perth-based wholesaling and retailing group and Foodland shareholders would retain ownership of Foodland New Zealand.
The offer values Foodland Australia at 7,18 Australian dollars per Foodland share, representing an implied premium of 39.1% to the estimated value of Foodland Australia, Metcash said.
The South African consumer goods marketing and distribution group would also undertake a capital reorganisation which would result in the acquisition of the entire issued share capital of Metcash’s 60% majority shareholder, Metoz Holdings.
Under the capital reorganisation, Metcash is offering Aus$2,92 for each Metcash share held by Metoz, a holding company listed on the Johannesburg Stock Exchange.
Metcash chief executive Andrew Reitzer said the proposals would allow Foodland shareholders to receive an attractive price for the underperforming Australian operations.
They would also retain the New Zealand business, which would be a food retail investment with a leading market position, Reitzer said. – Sapa-AFP