French dairy giant The Lactalis Group has offered its Italian subsidiary Parmalat a buyout offer of €637m for the 12.26% stake it doesn’t hold.
The move from the Lactalis is to take 100% control of Parmalat in order to delist it from the Milan Stock Exchange.
All of the outstanding ordinary shares of Lactalis’ subsidiary have been given a voluntary tender offer price of €2.80 per share. The offer is made only in Italy as per Lactalis.
Parmalat is a global Italian dairy and food company in which Lactalis became a controlling stakeholder in 2011 following a deal that was worth €2.5bn, reported the Reuters.
Lactalis said in a statement: “After more than 5 years as leading shareholder of Parmalat, Lactalis Group intends to provide Parmalat with a new dynamic, which can be more easily and effectively achieved in the long term without recourse to the stock market.”
The dairy major's offer pertains to a total of 227,419,208 ordinary shares it doesn’t own in the Italian subsidiary.
Lactalis further added: “The offer also includes the ordinary shares that may be issued, as well as those as may be issued in order to serve the exercise of the “2016-2020 Parmalat common share warrants”.”
It claimed that the offer price it has made was never reached by Parmalat’s shares after 2011.
The offer amount as per Lactalis is 11% higher than the average official price over the previous month and nearly 15% of the average share price taken from the last three months.
Earlier in the month, Profit.ro.reported that Lactalis acquired a Romanian dairy producer Covalact for an undisclosed sum.
