UK: Court clears MBO of cake firm Lees Foods
- Court clears GBP5.6m MBO
- Bid had faced investor opposition
A court has cleared the proposed management buy-out of UK snack maker Lees Foods.
The takeover, first put forward in April, had been delayed after some investors argued the GBP5.6m (US$8.8m) bid the directors made for Lees under-valued the business.
However, a court today (26 June) gave the green light to the deal. A statement on the London Stock Exchange said Lees' shares were set to stop trading on the AIM on Thursday.
In May, a shareholder group told just-food Lees' management, including CEO Clive Miquel, would "have a battle on their hands" if they were to push through the bid.
The investor group, ShareSoc, could not be reached for immediate comment.
Court Sanction of the Scheme of Arrangement
The Company is pleased to announce that the Court has today sanctioned the Scheme, authorised the Re-registration and confirmed the Capital Reduction to effect the recommended cash offer for Lees by Randotte (No.555) Limited ("Randotte").
The Scheme and associated Re-registration and Capital Reduction is expected to become effective on 27 June 2012 once a certified copy of the Court Order and statement of capital has been registered with the Registrar of Companies in Scotland.
It is expected that the cancellation of admission to trading of Lees Shares on the AIM Market of the London Stock Exchange will take place at 7.00 a.m. on 28 June 2012.
The Consideration of 230 pence per Lees Share to be paid by Randotte to Scheme Shareholders pursuant to the Scheme is expected to be despatched (in the case of certificated holders of Lees Shares) or settled in CREST (in the case of uncertificated holders of Lees Shares) on or prior to 10 July 2012.
Capitalised terms not otherwise defined, shall have the same meanings as set out in the scheme document sent to shareholders on 19 April 2012.
Original source: www.leesfoods.co.uk
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