COPENHAGEN: Danish food ingredient and enzyme company Danisco said Monday it would be acquired by US chemical giant DuPont in a deal worth $6.3 billion (4.9 billion euros), pending approval by regulators.
The acquisition of Danisco, a profitable leader in the agri-food and biotechnology sectors, is set to make DuPont "a clear leader in industrial biotechnology," the Wilmington, Delaware-based company said.
The purchase involves $5.8 billion paid in cash and assumption of $500 million of Danisco's net debt, the Wilmington, Delaware-based DuPont announced late on Sunday. Early Monday, Danisco said in a statement its board of directors had "unanimously resolved that it intends to recommend the shareholders to accept the offer when made."
DuPont needs to acquire 90 percent of shares to take control of Danisco, with 10 percent of shareholders having the possibility to block the bid.
Jyske Bank analyst Jens Houe Thomsen said it was very unlikely that minority shareholders would block the takeover or that a rival bid would emerge.
"Dupont is already partnered with Danisco in the next-generation ethanol sector and its hard to see other buyers that could justify a higher offer," he told AFP.
The Danish company -- a specialist in food ingredients, enzymes and bio-products -- became involved in a joint-venture with the US chemicals giant in 2008 through its Genencor division.
The company, DuPont Danisco Cellulosic Ethanol, produces cellulosic ethanol, a renewable biofuel produced from non-food sources.
Danisco was also a leader in the sugar business until it sold that division to a German sugar refiner in 2008 for $1.2 billion.
A number of companies had signalled interest in purchasing Danisco, according to its board chairman Joergen Tandrup.
But DuPont, already a partner, apparently presented the best offer.
"It's a satisfying offer that shows Danisco is a flourishing company," Tandrup told Denmark's TV2 News Monday, adding DuPont's offer of 665 kroner ($113.5) per share was 25 percent over Dansico's share price at the close of trading in Copenhagen on Friday
The announcement sent the share price rocketing 25.4 percent on the Copenhagen stock exchange to 669.5 kroner on Monday morning, with analysts saying the small difference with the price offered by DuPont indicated that no rival bid was expected.
Comments
Comments are closed.