South African group Pioneer Foods said on Wednesday it has withdrawn its offer to buy unlisted wine and spirits maker KWV, after the deal failed to gain support from some KWV shareholders.
Pioneer, which makes Sasko bread, Weetbix breakfast cereal and Liquifruit juices, made a firm offer in December to buy KWV for R828-million, or R12 per KWV share.
A quarter of the price was to be paid for with Pioneer shares valued at R49,83.
“KWV has received confirmation from certain significant shareholders that due to the offer price and possible adjustment thereof, they will not support the proposed scheme” it said. “Parties have therefore agreed to terminate the scheme process.”
Pioneer had hoped the acquisition would help it expand into the wine and brandy markets. — Reuters