Grocery wholesaler Metcash has increased its offer for Foodland’s Australian wholesale and retail operations and announced a plan to spin off Foodland New Zealand.
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According to Metcash, the total value of its cash offer is now A$8.91 (US$6.92) per share, while the share alternative is worth $9.41.
“As far as we are concerned we are paying a knockout price for Foodland Australia,” said Metcash CEO Andrew Reitzer. “With regard to Foodland New Zealand, it’s business as usual, it will stay with Foodland shareholders via the issuance of NZ preference shares under our offer and their subsequent conversion into shares in a separately listed Foodland New Zealand.”
“Metcash remains committed to acquiring Foodland Australia and believes that its substantially improved offer creates the best value for Foodland shareholders,” he said. “We continue to believe that the best way for Foodland shareholders to maximise the value of their Foodland shares is for Foodland Australia to be sold to Metcash and for the market to determine the value of Foodland New Zealand.”
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