ITALY – French dairy products corporation, Lactalis has increased its stake in the Italian dairy and food counterpart to 95.81% with the transaction expected to complete December 5, 2018.
The company is also planning to delist Parmalat ordinary shares from the Italian Stock Exchange and take the company private.
Lactalis, which previously owned 89.63% stake in Parmalat through its fully-owned company, Sofil S.a.s said it purchased a block of 114,546,237 Parmalat shares representing 6.175% of the Issuer’s share capital, at a price equal to US$3.25 (Euro 2.85) per share.
It said it was considering buying out shares held by minority shareholders in a compulsory buy-back procedure.
“As a result of the above it is arisen on Sofil, together with the persons acting in concert with Sofil, the obligation to purchase from the remaining shareholders who will request all the remaining outstanding ordinary shares with exclusion of the no. 2,049,096 treasury shares,” said the company’s statement.
“The number of the Remaining Shares may be increase as a consequence of the possible issue and allocation of new ordinary shares within the remaining tranches of the capital increase.
The fulfillment of the Obligation to Purchase will entail the delisting of Parmalat’s ordinary shares from the Italian Stock Exchange organized and managed by Borsa
Italiana S.p.A., according to the applicable terms and procedures of law.”
Last year, Lactalis had attempted to delist Parmalat and take it private but failed to reach the 90% stake threshold.
It acquired a controlling stake (29%) in Parmalat in 2011 giving it significant influence and decision making abilities in the dairy group.
In 2017, Parmalat said it had acquired several cheese-making companies in Chile through its La Vaquita Holding subsidiary at a combined enterprise value of around US$105 million.
The deal included four production facilities with about 600 employees and La Vaquita and Kümey brands and according to Parmalat, the acquired companies generated net sales of around US$108 million in 2016.
Last month, Parmalat acquired Kraft Heinz’s Canadian natural cheese business for US$1.2 billion.