| CATEGORY: SMALL CAPS NEWS SECTOR: FOOD PRODUCERS |
Benecol firm gobbles up Glisten |
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Wed 10 Feb 2010
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LONDON (SHARECAST) - Finnish food company Raisio, the company behind the Benecol cholesterol-lowering product range, is backing a management buy-out of snack foods firm Glisten.
Glisten shareholders are being offered 140p in cash for each of their shares, a chunky premium to the 86.5p mid-market price of the shares the day before the agreed bid was announced.
The terms value the entire issued share capital of Glisten at around £19.8m.
The acquisition is being made by a company specifically set up for the purposes of acquiring Glisten. Raisio will own 85% of the new company while Glisten chief executive Paul Simmonds and finance director Robert Davies will own the remaining 15%.
A independent committee of Glisten directors has recommended acceptance of the offer.
‘It is quite clear that 140p per share represents a very good premium for shareholders and that this deal provides Glisten, its management and employees with a great platform, both operationally and financially, from which to take the business forward,’ said Glisten’s non-executive chairman David Wallis.
The committee also noted that, without the backing of Raisio, Glisten would have to refinance its existing banking facilities and that this would probably involve a dilutive share issue to raise fresh funds.
The board of Raisio believes Glisten is a ‘highly complementary fit’ with its existing business and provides it with a beachhead from which to grow further in the UK.
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