Pioneer and KWV cancel R828m deal
Pioneer Food Group and KWV Holdings announced on Wednesday, 2 February 2011, that they have withdrawn an R828 million deal as a result of some of the latter's shareholders not being happy with the offer price being made for KWV.
Pioneer submitted a firm intention to make an offer to acquire the whole of KWV late last year at R12 a share.
KWV is primarily a wine and brandy business, but it has a long history dating back to 1918.
Pioneer wanted to expand its strong convenience food and juices brands offerings to the range of brandies and wines held by KWV.
"Following discussions with KWV shareholders, KWV has received confirmation from certain significant shareholders that due to the offer price and possible adjustment thereof, they will not support the proposed scheme," the companies said a joint statement.
Consequently, the parties have concluded that there will not be sufficient support to pass the requisite resolution to approve the proposed deal.