National Foods chairman David Crawford has today (Tuesday) written to shareholders urging them to accept the revised offer from Philippines food and drink company San Miguel.
“The board recommends you accept San Miguel’s Revised Offer immediately,” he said. “The board of National Foods has unanimously recommended that shareholders accept San Miguel’s revised offer, in the absence of a superior proposal. Each of the directors of National Foods who holds shares in National Foods intends to accept San Miguel’s revised offer, in the absence of a superior proposal.”
Under the offer San Miguel would pay A$6.40 (US$4.96) for National Foods shares. On Monday, New Zealand dairy giant Fonterra announced that it would not pursue its offer for National Foods and that it would accept the San Miguel offer for its 19% shareholding in National Foods, once that offer becomes unconditional.
“San Miguel’s Revised Offer is at the higher end of your Board’s stand-alone valuation range of $6.01 to $6.55 per share, which it announced on 6 December 2004,” Crawford said. The offer values National Foods at approximately $1.9 billion, he said.