SHV confirms final takeover bid for Dutch feed group Nutreco

By Jane Byrne contact

- Last updated on GMT

SHV confirms final takeover bid for Dutch feed group Nutreco

Related tags: Abn amro, Nutreco

Dutch investment company, SHV, has published its offer memorandum for Nutreco, revealing that its €44.50 per share offer begins Monday next and ends on 17 February 2015.

Nutreco’s board restated its approval of the takeover bid, which values the animal nutrition company at around €3 billion ($3.7bn) and represents a premium of 58% to the closing price of 17 October.

The feed giant confirmed it will hold an extraordinary shareholder meeting on February 9 to discuss the offer.

Knut Nesse, CEO of Nutreco, said since SHV made its first approach, management at the feed producer has ensured a process to “maximize value”​ for its shareholders.

He said SHV fully supports Nutreco in executing its existing strategy, including geographical expansion.

The offer represents an attractive price, implies an above average EV/EBITDA multiple of 10.6 and provides high deal certainty for shareholders,”​ said Nesse.

SHV 'won't break up' the Dutch group

Stephan Nanninga, chairman of the executive board of SHV, said the investors have given a firm commitment to not break up Nutreco, and to keep its central management and key support functions in the Netherlands.

The family investment firm will finance the deal from its own resources, and it stressed that it has a longstanding business track-record in Asia and other emerging countries considered to be growth markets for Nutreco.

Nutreco shores up its defenses

Indeed, the Dutch feed group announced on Monday this week that it had made two ‘bolt on’ acquisitions to expand its presence in Brazil.

The purchases are in line with its strategy to expand into growth geographies and include Fatec, a producer of premixes and animal health products for broilers, layers, swine and dairy cows, and BRNova, a producer of premixes and feed specialties, mainly for poultry and swine. 

While commenting on those deals, ABN AMRO equity analyst Maarten Bakker told us there was still time for other players to enter the race for Nutreco.

“It would seem like its full steam ahead for SHV in its bid to secure all of Nutreco’s shares and give the least possible chance for any other parties to enter into the race. 

However the door is still open. The tender period lasts eight weeks from when SHV finalizes its offer. This is a rare opportunity to snatch Nutreco so I would be surprised if there were no other offers made in that time. 

And Nutreco management reported last week that Cargill was still evaluating the situation. So it is highly speculative for the moment.”​ 

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