Swiss food company Nestle is planning to acquire the remaining stake of 36.3% in Israel-based food manufacturer Osem for $840m.
Nestle had originally invested in Osem around two decades ago, when it had taken 63.7% stake in the company, which is touted to be Israel's third biggest food producer in terms of sales. Other top players in the Israel market being Tnuva and Strauss Group, reported Reuters.
On Nestle's website, the companies jointly announced their decision to delist Osem from Tel Aviv Stock Exchange following Nestle's declaration to acquire the remaining stake, which it currently does not own.
The transaction requires approval from Osem's minority shareholders. Osem has called for a shareholders' meeting on 17 March 2016.
Nestle stated that it has entered into an agreement with Osem's Special Committee of the Board, which includes independent directors, to suggest a price of ILS 82.50 per share for Nestle's takeover of the remaining interest.
Osem, which was established in 1942, manufactures and distributes branded food products.
The companies entered into a partnership long ago and christened their strategic alliance as Osem-Nestle Professional. The subsidiary that was established through this partnership is an attempt by Nestle to adapt to the changing global consumer trends in recognizing the strategic importance of international markets, the Osem website stated.
Osem-Nestle Professional operates in 95 countries with more than 10,000 culinary experts as its staff. Osem-Nestle Professional is the professional extension of Osem in Israel. It provides wide range of solutions for beverages, culinary art, pastries, pizza and others.
Osem, with a current market value of ILS7.3 bn, manufactures and markets products such as pasta, salad dressings and ice cream under Nestle and other brand names. In Europe, Osem's Tivall line of soy-based meat alternative products is popular, reported Reuters.
The Israeli food producer owned nine factories across Israel and for the first nine months of 2015 and reported a net profit of ILS294m on sales of 3.2 billion, reported the publication.
Image: Osem produces pasta products under Nestle brand. Photo: Courtesy of Pixomar/FreeDigitalPhotos.net.
