Unilever Says Kraft Heinz Proposal Undervalues Company
(Bloomberg) -- Unilever says Kraft Heinz proposal represents a 18% premium to Unilever’s share price as of Feb. 16 close, this fundamentally undervalues Unilever.
- Proposal received was that Unilever holders would get $50/share in a mix of $30.23/share in cash payable in U.S. dollars and 0.222 new enlarged entity shares per existing share
- This valued Unilever at a total equity value of ~$143b
- Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever’s shareholders
- Unilever doesn’t see the basis for any further discussions
- Unilever recommends shareholders take no action
- Kraft Heinz must either announce a firm intention to make an offer for Unilever under rule 2.7 of the code by not later than 5pm on March 17
- Unilever confirms that announcement is not being made with the agreement of Kraft Heinz
- Statement
- As at Feb. 16 close, a mix of $30.23 in cash payable in U.S. dollars and 0.222 Kraft Heinz shares per existing Unilever share would value each Unilever common share at $49.61, representing a premium of 18% to Unilever’s share price
- Related: Kraft Heinz Confirms it Approached Unilever on Merger
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Tickers KHC US (Kraft Heinz Co/The)
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