Zeder’s share price rose more than 28percent on Friday morning following the announcement by PepsiCo that it intends to acquire 100percent of the shares in Pioneer Foods through an all-cash offer of R110 per share, plus the R2.19 dividends that are due at the end of the year. Zeder closed 23.17percent up at R4.89.
Zeder has a 28.23percent stake in Pioneer Foods. The intention is to delist Pioneer Foods from the JSE, and for it to become part of PepsiCo’s global business.
The cash transaction will be one of PepsiCo’s largest acquisitions outside the US and will see an inflow of much-needed direct foreign investment of about $1.7billion (R23.63bn) into South Africa.
Celliers said the offer was still subject to Pioneer Foods and Zeder shareholders approving the transaction, but said that engagement in this regard had been very positive.