Greencore prices tender offer at £1.95 per share
Greencore plans to return £509 million to investors by way of a tender offer priced at £1.95 per ordinary share, representing a 17.5 per cent premium to Wednesday’s closing price.
The convenience food group will acquire up to 261 million shares, or about 37 per cent of its issued share capital. Greencore’s tender offer comes after its surprise market announcement that it was selling off its US business to Hearthside Foods for $1.075 billion. The company then said it planned to return capital to shareholders in a special dividend. However, some shareholders voiced concern about the tax implications.
Greencore, which is responsible for three out of every five sandwiches sold in the UK, opted for a tender offer, which will still return capital to shareholders.