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Current Position:Home » News » General News » Topic

Associated British Foods agrees to acquire remaining 48.65% stake in Illovo Sugar

Zoom in font  Zoom out font Published: 2016-04-12  Views: 4
Core Tip: Complete ownership of Illovo Sugar is expected to expand ABF's progress in the sugar markets.
London-based Associated British Foods (ABF) has reached an agreement to purchase the remaining 48.65% stake in South African company Illovo Sugar.

Under the purchase deal, the offer price of every share is R25 (£1.46), representing a total consideration of R5.6bn (£262m).

The entire transaction will be paid in cash.

In 2006, ABF bought the majority interest in Illovo.

The growing population and economy of Africa supports the expansion of the sugar market.

ABF operating division AB Sugar is known for its commercial development and delivering performance improvement programmes.

Complete ownership of Illovo Sugar is expected to expand ABF's progress in the sugar markets.

The decided offer price is in line with the preliminary fair and reasonable opinion delivered by the independent valuation expert retained by the board of Illovo, Rand Merchant Bank, a division of FirstRand Bank.

The transaction will be instantly earnings accretive for ABF.

To be implemented through a scheme of arrangement, the deal is subject to Illovo minority shareholder approval.

Approval will be sought in May at an Illovo shareholder meeting.

Owning a majority of the company's shares not owned by ABF, Illovo shareholders provided undertakings to either vote, or to recommend their clients to vote in favour of the scheme of arrangement.

Illovo directors have agreed, in principle, to vote for the proposed transaction.
 
 
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