Osem Investments, the Israeli food group, has rejected claims from local consultancy Entropy that Nestle’s proposed takeover of the business undervalues the company.

According to Reuters, Entropy, in a report the firm prepared ahead of a shareholder vote on the deal on 17 March, has said the value of Nestle’s bid is too low and less than the food giant#s other recent transactions.

Nestle last month proposed a deal to acquire the remaining shares in Osem Investments for ILS3.3bn (US$840.5m). A deal would give Nestle the remaining 36.3% of Osem as it already holds a 64% stake in the business.

Entropy said the deal gives Osem an enterprise value of 13.4 times earnings before interest, tax, depreciation and amortization, compared with an average multiple of 15.6 for Nestle’s eight large deals in the past 15 years.

In a stock exchange filing, Osem rejected the argument adding it viewed the deal as “fair”.

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

Tick here to opt out of curated industry news, reports, and event updates from Just Food.

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.