Canada’s Maple Leaf Foods yesterday [Tuesday] reported it would purchase four million shares in its Canada Bread division.

Maple Leaf Foods will pay C$106m (US$68.2m) in the private placement at $26.50 per share. The deal involves the purchase of treasury shares from Canada Bread, and is being undertaken to enable it to buy Maple Leaf’s bakery division, reported Reuters.

The move follows an announcement from Canada Bread last October in which it stated that it would purchase Maple Leaf’s baking activities in their entirety and bring them together in a deal worth some $266m including the acquisition of debt.

Maple Leaf stated that the price represented a 24% premium to the ten-day average closing price for Canada Bread common shares. Canada Bread has until 10 January 2003 to accept the offer. Shareholders are due to meet on Tuesday to discuss the offer.

Canada Bread is presently 68%-owned by Maple Leaf, a large manufacturer with trademarks including Olivieri and Tenderflake.

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.

Company Profile – free sample

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 GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.