They would have been bananas not to accept an offer like that.
Fyffes, the fresh fruit distribution company based in Ireland, is to be bought by the Japan-based Sumitomo Corporation in a deal worth over €751 million.
Under the terms of the deal, Swordus Ireland Holding Limited (“Bidco”), a wholly-owned subsidiary of Sumitomo, will acquire the entire issued share capital of Fyffes, which is valued at approximately €751,365,470. That’s an awful lot of bananas.
Not surprisingly, Fyffes Directors have unanimously agreed to recommend the offer to its shareholders, 27% of whom have already committed to it.
Under the terms of the Acquisition, Fyffes Shareholders will be entitled to receive €2.23 in cash for each Fyffes Ordinary Share, representing a premium of approximately 49% to Fyffes’ closing share price of €1.50 on 8 December 2016.
In addition, Fyffes Shareholders will be paid a final dividend in respect of calendar year 2016 by Fyffes of €0.02 per share in cash, bringing the total amount to be received by Fyffes shareholders to €2.25 per Fyffes Ordinary Share in cash, to be paid by May 1, 2017.
With headquarters in Dublin, Fyffes employs 6,000 people in offices in 12 countries around the world and is the number one importer of bananas and the leading marketer of organic & Fairtrade bananas to Europe.
Unsubstantiated reports suggest that the offer made by the Sumitomo Corporation was Fyffe times better than the nearest competitor’s bid.
Main image via Facebook/Fyffes Ireland
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