SINGAPORE - Dutch tea and coffee company Jacobs Douwe Egberts (JDE) has made a S$1.45 billion all-cash offer for Singapore instant beverage maker Super Group Ltd.
If it succeeds, JDE will delist and privatise Super Group, the company said in a filing with the Singapore Exchange on Thursday (Nov 3).
JDE is offering S$1.30 in cash for each Super Group share, representing a 62.5 per cent premium over the closing price on Oct 4, the last full trading day prior to an SGX query on Super Group's trading activity.
Super Group said shareholders representing around 60 per cent of its total share capital have undertaken to tender all of their shares in acceptance of the general offer. Super Group's shareholders include Yeo Hiap Seng Ltd (YHS), which has a 12 per cent stake.
In a separate filing on Thursday, YHS said it would realise a gain of around S$138.4 million from the sale of its Super Group shares.
Super Group shares jumped on Thursday after a trading suspension was lifted. The shares were up 28.4 per cent, or 0.275 cents, to S$1.245 at 2.05pm.
Said Super Group founder and managing director David Teo Kee Bock: "We are proud that JDE, the leading pure-play consumer packaged goods coffee company in the world, recognises the strength, depth and breadth of the company that we have so labouriously worked to build over the past 29 years."
Super Group, which owns well-known Owl brand of coffee, has about 1.6 per cent of the global instant-coffee market share compared to Nestle SA's 41.9 per cent, Bloomberg News reported, quoting data from Euromonitor.
If it succeeds, the acquisition will extend the caffeine empire of Europe's billionaire Reimann family into Asia. Super Group is the latest in a string of coffee and food brands to be amassed by the Reimann family, whose investments include Jacobs Douwe Egberts, Peet's Coffee & Tea, Keurig Green Mountain and Krispy Kreme Doughnuts Inc, Bloomberg reported.
JDE's offer is dependent on receiving more than 50 per cent of voting rights and regulatory approval, being met by May 3, 2017. It will make a compulsory offer for the rest of the company and delist it if acceptances reach at least 90 per cent.