Feb 21, 1:48 p.m., New York
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Unilever plc GB00B10RZP78

Unilever Rejects $143 Bln Offer From Kraft Heinz

02/17/17

LONDON (dpa-AFX) - U.S. food maker Kraft Heinz Co. (KHC) Friday confirmed that it has made a comprehensive proposal to Anglo-Dutch consumer goods company Unilever Plc or Unilever NV. The cash and stock offer values $143 billion.

Further, Kraft Heinz noted that Unilever has declined the proposal, however it go ahead on the terms of transaction.

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In a separate statement, Unilever noted that the offer from Kraft Heinz fundamentally undervalues it. The potential offer for all of the shares represents a premium of 18 percent as at the close of business on 16 February 2017.

According to Unilever the proposal sees no merit, either financial or strategic to its shareholders and hence rejected it. Further, Unilever said it does not see the basis for any further discussions and asked its shareholders to take no action. Further announcements will be made as appropriate.

Kraft Heinz said the combination is expected to create long term growth. There has been speculations regarding the offer.

As per the proposal Unilever common shareholders would receive $50 per share in a mix of $30.23 per share in cash payable in U.S. dollars and 0.222 new enlarged entity shares per existing Unilever share. The offer valued Unilever at around $143 billion.

Copyright RTT News/dpa-AFX


                                                                                                                        

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