Nutreco Accepts SHV's Sweetened Offer Of €44.50 Per Share; Stock Up - Update

(RTTNews) - Fish feed and animal nutrition company Nutreco NV (NUTCF.OB) on Monday agreed to a sweetened offer from SHV Holdings NV for 44.50 euros a share, or a total value of 2.99 billion euros, up from the prior offer of 40 euros a share.

SHV's increased offer price represents a premium of 58 percent to the closing price of October 17 and a premium of 49 percent to the average closing price for the 3 months prior to and including that date.

Nutreco also rejected the recent expression of interest from U.S. agribusiness company Cargill, together with Permira, to break up Nutreco through a structured transaction.

Cargill stated that, subject to satisfactory completion of a due diligence exercise, it intends to make an offer of at least 43.20 euros in cash per Nutreco share.

Cargill said it was exploring a structured transaction together with private equity firm Permira. This would result in a break up of Nutreco, by which Cargill would acquire the fish feed business and Permira would acquire the animal nutrition business.

Nutreco indicated Cargill's expression of competing interest is not in the interest of Nutreco's stakeholders.

Nutreco said its board full supports the offer from SHV as it will deliver superior benefits to the shareholders, employees, customers, partners and other stakeholders of Nutreco.

Under the amended conditional agreement, Nutreco and SHV may terminate the conditional agreement in the event a bona fide third party makes an offer which, in the opinion of the board, is a more beneficial than SHV's improved offer, and also provided that the consideration per share exceeds SHV's increased offer price by 8 percent or more.

In the event of such third party offer, SHV has the opportunity to match such offer, in which case the conditional agreement may not be terminated by Nutreco.

In October, Nutreco agreed to be acquired by SHV for 40 euros a share, or 2.7 billion euros. SHV has built up a stake of about 15 percent in Nutreco.

SHV is a privately-owned company with a long-term focus to build valuable businesses. The firm will financially support Nutreco with investment needs for capital expenditures and acquisitions in accordance with Nutreco's long-term growth strategy.

In Amsterdam, Nutreco shares closed at 45.07 euros, up 5.68 euros or 14.42%, on a volume of 2.7 million shares.