The acquisition of New Zealand potato products maker Mr Chips has moved a step closer after more investors accepted in principle the terms of Simplot Australia’s imminent takeover bid.
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Simplot has reportedly struck deals with Balle Bros and Jon Davison, giving the food manufacturer 70.87% of Mr Chips shares on a conditional basis.
Balle holds a 15.48% stake while Davison holds 0.72% of the company.
According to the New Zealand Herald, the agreements commit both parties to accepting an offer at or above NZ$2.90 (US$2.19) a share
As just-food went to press, Mr Chips shares were trading on the New Zealand stock exchange at $2.60 per share.
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By GlobalDataAdditionally, both parties have reportedly also agreed to take up shares in the as-yet unnamed Simplot subsidiary that will make the offer.
Simplot has indicated that it intends to only hold around 60% of Mr Chips, with institutional shareholders taking up the remaining 40% of the Simplot subsidiary.
Simplot had previously reached similar agreements with majority stakeholder Sinclair Long Term Holdings and institutional shareholder Anglesea Consulting.
