Sunday, December 21st4.4°C
24563
23875

Chiquita Brands gets a $611M buyout offer from Safra Group, Cutrale Group, will review it

NEW YORK, N.Y. - Chiquita Brands has received a buyout offer worth about $611 million from investment firm Safra Group and the Brazilian agribusiness and juice company Cutrale Group.

Safra and Cutrale are offering $13 per share, a 29 per cent premium to Chiquita Brands International Inc.'s closing price of $10.06 on Friday. Chiquita said its board would review it and asked shareholders to await its recommendation.

The unsolicited bid disclosed Monday comes as Chiquita and Fyffes of Ireland were working on their own transaction. The two companies agreed in March to merge in a stock-for-stock deal to create the world's biggest banana supplier. If a transaction were to occur between Chiquita and Fyffes, Chiquita's headquarters would move from Charlotte, North Carolina, to Dublin, a more tax-efficient corporate base.

In a letter sent to Chiquita President and CEO Edward Lonergan and Chairwoman Kerrii Anderson, Safra and Cutrale said that they believe their proposed transaction doesn't have the same execution risk and uncertainty that a deal with Fyffes does. The companies also said that they think their offer gives more value to Chiquita shareholders and could be completed before year's end.

Safra and Cutrale said that they would like to hear back from Chiquita on their offer by noon on Friday.

In a statement, Chiquita Brands said its board would "carefully review and consider the offer to determine the course of action that it believes is in the best interest of the company and its shareholders."

It advised shareholders to take no action for now and await the board's recommendation.

But it also noted that "we continue to strongly believe in the strategic merits and value provided by the proposed deal with Fyffes PLC."

Representatives from Fyffes did not immediately respond to emails seeking comment.

Gaining access to Chiquita would add more diversity to Cutrale's business. The company is an orange juice processor that also has operations that include apples, peaches, lemons and soybeans. Safra runs banks and invests in other businesses in North and South America, Europe, the Middle East and Asia.

In addition to being a major banana distributor, Chiquita Brands markets and distributes pineapples, packaged salads and other fresh produce.

Shares of Chiquita surged $3.13, or 31.1 per cent, to $13.19 in Monday afternoon trading — above the offered price.

The Canadian Press


Read more Business News

24304


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24588

FEATURED Property
216367814991 East Hill Rd
10089681 bedrooms
$999,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24386




Member of BC Press Council


23860