Metcash increases offer for Foodland Australia
Also outlines a series of positive developments in relation to its Offer and in particular the spin-off of Foodland New Zealand.
04/05/05 Metcash Trading Limited (Metcash) has announced a significant increase to its Takeover Offer for Foodland Associated Limited’s (Foodland) Australian wholesale and retail operations (Foodland Australia).
Metcash also outlined a series of positive developments in relation to its Offer and in particular the spin-off of Foodland New Zealand. These developments include a proposal to establish a Task Force to facilitate and oversee the spin-off of Foodland New Zealand.
Metcash has increased both its Cash and Scrip Offer for Foodland Australia (Revised Offer).
In addition to a substantial increase in the price attributable to the underlying value of Foodland Australia, Metcash’s Revised Offer reflects the incremental value attributable to the Surplus Assets identified in Foodland’s Target’s Statement. Based on information contained in Foodland’s Target’s Statement, Metcash has calculated the value of Surplus Assets within Foodland Australia to be $96.5 million. This calculation of Surplus Assets excludes a contingent tax receivable of approximately $25 million and cash balance of $18 million, which Grant Samuel attributed to Foodland Australia (the Excess Cash). Metcash will now acquire and retain all of these Surplus Assets except for the contingent tax receivable and the Excess Cash.
