Swiss-based bakery company ARYZTA plans to reduce its stake in agri-services company Origin Enterprises.
The company, which currently holds 85.3m shares in Origin, will reduce its 68% stake by selling up to 49m shares in the group.
Go deeper with GlobalData
The books for the placing will open with immediate effect, Aryzta said. J&E Davy and Goodbody Stockbrokers are acting as joint book runners.
"Aryzta will publish the definitive number of shares placed and their price once the book-building process has been completed," Aryzta said. This is expected to be completed today (25 March), the company added.
MainFirst analyst Alain Oberhuber said the step was "positive" for the group. In a note to investors he flagged the possibility that proceeds could be used for higher dividends or share buy-back.
Oberhuber continued: "Aryzta becomes a pure food manufacturer play for better comparison to its peers. We like the transaction as it makes Aryzta a pure play. This is a move investors were waiting for.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAryzta shares had edged up 1.25% to EUR65.18 (US$74.18) at 9.15 (GMT) this morning.
