Osem shareholders approve Nestle takeover


The merger is due to be followed by delisting of Osem from the Tel Aviv Stock Exchange. Trading has already been halted.

Osem Investments Ltd. (controlled by Nestle SA (SWX:NESN)) (TASE: OSEM) has announced that its shareholders' meeting today approved the merger with global food company Nestle. Trading in the Osem share was halted following the announcement.

Just over a month ago, Nestle announced that it intended to acquire the public's shares in its Osem subsidiary at a cost of NIS 3.3 billion through a reverse triangular merger. As part of the process, Nestle plans to buy the public's Osem shares, currently amounting to 36% of Osem's share capital, at NIS 82.50 per share, reflecting a NIS 9.1 billion company value for Osem. When the measure is carried out, the Osem share is expected to be delisted from trading.

As part of the reverse triangular merger, Nestle will found a special purpose vehicle company for the merger. This method requires a smaller majority than that required for an offer to purchase.

Osem is Israel's third largest food company. It produces and markets over 2,000 food items, mainly in Israel, but also in the US and Europe, and employs 4,800 workers.

Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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