Pioneer proposes offer to KWV board
Pioneer Foods announced on Thursday, 2 December 2010, that it has submitted to KWV Holdings board a firm expression of interest which may lead to an offer being made to acquire the entire issued share capital of the wine and spirits company.
The proposed consideration amounts to R12 per KWV ordinary share, which amounts to a total consideration of R827.7 million.
The proposed consideration is subject to a number of conditions precedent, which KWV and Pioneer will communicate once the firm expression of interest becomes a firm intention offer, the companies said in a joint statement.
The proposed deal represents a premium of 10.93% to the volume weighted average traded price of KWV Holdings shares, for the 30 days preceding 13 October 2010, the date of the first cautionary announcement published by KWV.