Sector News

Israel's Osem minority shareholders approve Nestle's buyout

March 21, 2016
Consumer Packaged Goods

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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