KWV and Pioneer Foods have terminated the South African food group’s attempt to take over the wine and spirits maker.
The two firms jointly announced earlier today (2 February) that the proposed deal between them has been called off because more than 25% of KWV shareholders were against the transaction.
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KWV said it had received receipt of enough shareholders who were not in favour of the deal and that the 75% vote needed to swing the deal would not be achieved.
Pioneer’s bid was therefore no longer subject to any offer period as defined by the Security Regulation Panel (SRP).
Separately, late yesterday, KWV indicated that its net profit for the last six months of 2010 would be down by 60-70%. Headline earnings are expected to be between 75 and 85% lower, with poor trading conditions in Europe and the strong rand being blamed.
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Both KWV and Pioneer claimed that the termination of the transaction was not related to KWV’s business performance, or yesterday’s trading update.
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