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Israel's Osem minority shareholders approve Nestle's buyout

March 21, 2016
Food & Drink

Minority shareholders in Israeli foodmaker Osem approved Swiss food giant Nestle’s buyout offer, paving the way for completion of the deal.

Osem in a statement to the Tel Aviv Stock Exchange on Thursday did not provide further details.

Nestle last month offered 3.3 billion shekels ($857 million), or 82.5 shekels per share, for the Osem shares it does not own in a deal valuing the company at 9.13 billion shekels.

Nestle already owns 63.7 percent of the company, while institutions hold 7 percent.

Ahead of the vote, Israeli consultancy Entropy – whose clients are institutional investors – said the valuation Nestle offered is too low and less than other purchases by Nestle in recent years. Osem, Israel’s third-largest foodmaker, rejected the argument, saying the terms were fair.

By Steven Scheer

Source: Reuters

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