Pioneer Foods and KWV Holdings have jointly confirmed that the South African food and drink group has tabled a takeover bid for the wine and spirits maker.

The two companies said yesterday (13 December) that Pioneer Foods wrote to KWV late last week with an offer of ZAR827.8m (US$120.5m) for 100% control.

The offer amount is subject to a “potential downward adjustment”, depending on any difference in KWV’s financial position between the end of June – the end of its fiscal year – and Pioneer’s deadline for KWV’s internal due diligence, 31 January. The purchase would appear to include the 30% stake KWV holds in South African wine giant Distell.

KWV also has until the end of April to approve Pioneer’s offer. The drinks company has appointed an independent advisor to consider Pioneer’s bid. The results of this review will be passed on to KWV “in due course”.

Pioneer initially made contact with KWV back in November about a possible takeover bid. This was followed earlier this month, however, by reports out of South Africa that any bid less than $120m would meet with shareholder opposition.