Dreyer’s Ice Cream is anticipating a merger with Nestle Ice following the expiration of the company’s put period for Class A shares.
Dreyer’s has ended its put period – when shareholders of Dreyer’s Class A Callable Puttable Common Stock could sell up at purchase price.
During the put period, which expired on Friday (13 January), Dreyer’s offered a cash payment of US$83.10 per Class A Share. According to reports, an aggregate of 30,518,885 Class A Shares properly exercised the Put Right.
Nestle Ice Holdings, who provided funds to pay the purchase price, will now become the record owner of in excess of 90% of Dreyer’s outstanding voting stock. Nestle Ice Holdings is a wholly-owned subsidiary of Nestle Holdings.
If at any time Nestle owns at least 90% of Dreyer’s outstanding voting stock and the Class A Shares are converted into Class B Shares, Nestle will become obligated to cause a short form merger between itself and Dreyer’s. Nestle has affirmed its intent to form the merger, with Dreyer’s being the surviving corporation and becoming a wholly-owned indirect subsidiary of Nestle.
It is anticipated that Dreyer’s Class A Shares will cease to trade on Nasdaq as of the close of trading on 17 January 2006, with an expected merger with Nestle the following day.
