Halister News

(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