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€751m Fyffes takeover by Japan's Sumitomo Corporation approved by shareholders

Approval of the proposed deal was virtually unanimous, with 99.7% of investors voting in favour of it
Approval of the proposed deal was virtually unanimous, with 99.7% of investors voting in favour of it

Shareholders of fresh fruit distributor Fyffes have approved a €751m takeover of the company by Japan's Sumitomo Corporation.

Approval of the proposed deal was virtually unanimous, with 99.7% of investors voting in favour of it.

It was announced last month that Swordus Ireland Holding Limited, a wholly owned subsidiary of the Japanese giant, would acquire the entire issued share capital of Fyffes. 

Under the terms of the deal, Fyffes shareholders will be entitled to receive €2.23 in cash for each ordinary share in the company.

Fyffes shareholders will also be paid a final dividend in respect of the 2016 calendar year of €0.02 per share in cash.

This will bring the total amount to be received by Fyffes shareholders to €2.25 per Fyffes ordinary share in cash. 

The deal represented a premium of about 49% to Fyffes' closing share price of €1.50 on 8 December. 

Fyffes shares are trading 0.09% higher in Dublin this afternoon at €2.23.

It comes two years after Fyffes tried and failed to buy US rival Chiquita to create the world's largest banana company.

Headquartered in Dublin, Fyffes has an annual turnover of €1.2 billion with operations in Europe, the US, Canada, Central America and South America and Asia.

Its activities include the production, shipping, ripening, distribution and marketing of bananas, pineapples, melons and mushrooms. It employs over 17,000 people worldwide.

Headquartered in Japan, the Sumitomo Corporation group consists of over 800 companies and over 65,000 workers. It has been active in the banana industry since the 1960s and imports about 30% of the bananas into the Japanese market.