Second Aryzta shareholder calls for rejection of offer from Elliott
A SECOND Aryzta shareholder has called on the board to reject a takeover bid for the company from US hedge fund Elliott.
Lodbrok Capital holds around 4pc of the share capital and about 29pc of the total outstanding hybrid debt in Aryzta.
In a letter to the board of directors seen by the Irish Independent, Lodbrok said that the Elliott offer “grossly undervalues a re-focused and deleveraged Aryzta”.
“If such an offer were formally made to shareholders, we would view this as a highly opportunistic price, which is far from reflecting the underlying value that can be unlocked through the independent plan to dispose, re-focus and delever, as clearly articulated by the chairman,” the letter says.
Shares in Aryzta have fluctuated over the past week following reports US hedge fund
Elliott was considering a bid for the company. Elliott has since confirmed it has made a non-binding, or indicative offer of CHF0.80 (€0.74) per share in a deal that would value the firm at around €734m.
Cobas Asset Management, which has a 10pc stake, said earlier this week it had rejected the bid.
Lodbrok said it sees “a significant long-term potential for a re-focused Aryzta given its attractive market positions and well-invested asset base in its core markets”.
It added that it fully supports Aryzta’s recent changes in leadership and strategic direction.
Lodbrok said an Elliott offer would create “significant uncertainty for our customers, suppliers and employees”.
In addition to rejecting the bid from Elliott, Lodbrok said the non-binding offer was “distracting the company”.
“It is distracting from the ability both to conduct a thorough and value-maximising asset disposal process, as well as to restore much-needed confidence in customers around the longer-term prospects of the business,” the investment management company said.
If Elliott were is to make a formal offer, the board “should avoid publishing a neutral recommendation but rather recognise its fiduciary duty to reject it steadfastly,” Lodbrok added.
Aryzta’s AGM is slated for December 15.