JOHANNESBURG - A wholly-owned subsidiary of US multinational food, snack and beverage corporation PepsiCo has given notice of its firm intention to make an offer to acquire the issued ordinary shares of South African packaged goods company Pioneer Foods, the two said on Friday.
In a joint statement, the companies said the transaction was one of PepsiCo’s largest acquisitions outside the United States and a demonstration of its belief in South Africa’s potential and of its long-term commitment to the country.
The PepsiCo offer will be made at a base price of R110 per per Pioneer Foods ordinary share, with possible increases linked to dividends.
"The base price represents a premium of 56.5 percent to the 30-day volume weighted average traded price of Pioneer Foods ordinary shares of R70.31, as at 12 July," the companies said.
An independent board established in relation to the PepsiCo offer unanimously recommended the PepsiCo offer to shareholders.