Kerry Group and Golden Vale yesterday evening agreed terms worth 1.5426 euro in cash per share for Golden Vale shareholders. Golden Vale shareholders can either accept an offer of 1.50 euro in cash plus dividends worth 4.26 cents, or one Kerry Group ordinary share for every 10 Golden Vale shares, cash of 13 cents plus the dividends worth 4.26 cents.
The Board of Golden Vale has decided to unanimously recommend this new offer from Kerry. The cash offer, including the dividends payable, values the entire share capital of Golden Vale at 252 million euro.
Two weeks ago Golden Vale rejected an offer valued at 1.37 euro per share saying it did not reflect the true value of the company.
Commenting on yesterday's announcement, Golden Vale's Group Managing Director Jim Murphy said the terms are fair and reasonable and offer good value to the company's shareholders.
'Over recent years we have made great progress in developing Golden Vale, both in terms of product range and profitability,' Mr Murphy said. 'I believe that joining Kerry Group will enable Golden Vale to continue to develop as part of a larger growth focused organisation'.
Kerry's Managing Director Denis Brosnan that combining the two companies represents a logical development and opportunity in the interest of all stakeholders in both companies.
'The transaction considerably strengthens Kerry's consumer foods and foodservice offerings and provides strong synergies in food distribution services, dairy processing and agri-services'.
The proposed acquisition requires the approval of Kerry shareholders. An EGM will be convened to seek this necessary approval, a statement from the company said.
