USA: Buyout of Delhaize America completed by Delhaize after shareholders are sweetened
The stakes for Delhaize America , originally laid out during September, have been raised in a bid to finalise a buyout of minority shareholders by parent company Delhaize . The deal offered by Belgium's largest retailer is now valued at €2.2bn, raising the share value of the US subsidiary by 6%. The previous offer of 0.35 of a Delhaize share for every share in Delhaize America devaluated the US company, and was not enough to sway the minority shareholders who control 55% of the equity and 45% of the voting rights. Now, however, they have been convinced by an opportunity to gain some ready cash when Delhaize repurchases 10% of its stock for €400m and a deal which provides 0.40 of a share in the parent company for every share in Delhaize America.In addition, Delhaize has offered a full 2000 dividend for Delhaize shareholders if the deal is completed by May, when the next annual meeting is held.
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