Nutreco backs SHV’s offer for its shares

Nutreco's CEO, Knut Nesse. (Photo Credit: Skretting)

NETHERLANDS
Friday, December 05, 2014, 23:50 (GMT + 9)

Global fish feed and animal nutrition leader Nutreco supports the offer made by SHV Investments Ltd. as well as investments for capital expenditures and acquisitions in accordance with Nutreco's long-term growth strategy.

"From the very beginning when SHV approached us, we have ensured a process to maximize value for our shareholders while safeguarding the interests of all stakeholders involved, pointed out Nutreco’s CEO Knut Nesse.

And he added: “SHV fully supports Nutreco in executing the existing "driving sustainable growth" strategy, including geographical expansion. The complete package of the SHV offer is compelling to the shareholders, employees and other stakeholders of Nutreco.

"The offer represents an attractive price, implies an above average EV/EBITDA multiple of 10.6 and provides high deal certainty for shareholders. Nutreco's Executive Board and Supervisory Board both fully support and unanimously recommend it for acceptance by our shareholders," he stressed.

For his part, SHV’s Executive Board Chairman Stephan Nanninga welcomed the launch of the recommended public offer to acquire Nutreco and remarked that for his firm Nutreco is “a very promising and exciting company with a good long-term growth opportunity, solid management and company values similar to SHV.”

“Besides offering an attractive premium of 58 per cent to Nutreco's shareholders, we truly believe our offer is in the best interest of all Nutreco's stakeholders,” he remarked.

SHV’s offer for 100 per cent of the shares of Nutreco at EUR 2,988 million will be opened from 10 December 2014 and ends on 17 February 2015. But if one or more of the conditions is not satisfied by the closing date, the offeror may extend the offer period.

Meanwhile, investors in Nutreco have criticised the group for not launching a competitive auction and called on it to open its books to Cargill and Permira.

APG, the Dutch pension fund manager that owns almost 10 per cent of Nutreco, said: “All shareholders would benefit for management to offer a level playing field.”

The offer conditions will be discussed at an extraordinary general meeting of shareholders to be held on 9 February 2015.