Fonterra to end offer for National Foods
Fonterra has announced that it will end its offer for National Foods and divest its 19 percent shareholding.
11/04/05 Fonterra has announced that it will end its offer for National Foods and divest its 19 percent shareholding.
Fonterra Chief Executive Andrew Ferrier said that the preferred course of action was to complete the acquisition of National Foods, but it was now clear that increasing Fonterra’s offer would not be in the best interest of its shareholders.
Fonterra intends to accept San Miguel Corporation’s offer of $6.40 per share, if that offer is unconditional.
Fonterra’s average purchase price for its 56.5 million shares is $2.68. Fonterra received total dividend income of $45.5 million during the period of its investment, which began in October 2000. This represents an annualised compound return to Fonterra’s farmer shareholders of close to 30 percent over the period of the investment.
The $6.40 sale price equals the highest price paid for National Foods shares on the ASX prior to San Miguel’s revised offer of April 6, and is towards the top end of the National Foods Board’s valuation of $6.01 to $6.55.
*All dollar figures are in Australian currency
