Lactalis has moved to buy a majority stake in Albalact, the Romanian dairy group.
The French group has signed an agreement with Albalact shareholders that collectively own over 70% of Albalact.
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Lactalis already has a presence in the country, owning the local dairy business LaDorna, which it acquired in 2008.
The deal, announced today by the publicly-listed Albalact, is subject to competition approval in Romania. Should the transaction be given the green light and other customary conditions be satisfied, Lactalis intends to launch a voluntary takeover bid for the rest of Albalact’s shares.
Under the terms of the agreement, Lactalis will pay RON407.3m (US$98.2m) minus a contractually agreed adjusted net debt on the last day of the month before the month in which the conditions of the deal have been finalised.
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For illustrative purposes, Albalact said its net debt on 30 September was RON11.82m, which would lead to Lactalis paying RON0.4543 a share. Albalact said that price would be a 37% premium on the closing price for its shares listed on the Bucharest Stock Exchange yesterday.
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By GlobalDataAlbalact says it is the largest dairy company in Romania that has a majority of its stock owned by domestic investors. It markets fresh and UHT dairy products under brands including Zuzu, Raraul and de Albalact.
