Aryzta rejects bid approach from Elliott, updates on strategy
18/12/2020 18:35
ZURICH, Dec 18 (Reuters) - Swiss baked goods maker Aryzta
ARYN.S rejected on Friday an 800 million Swiss franc ($904
million) takeover approach from Elliott Advisors, saying it
preferred to go it alone.
"Aryzta announces that after careful review of the Elliott
proposal, including the envisaged refinancing for Aryzta, the
Board has decided unanimously to reject the proposal and not
enter into a transaction agreement with Elliott," it said in a
statement.
Elliott declined to comment.
Elliott launched its takeover bid at the beginning of
December, attaching conditions to the offer and setting a
deadline which has expired. urn:newsml:reuters.com:*:nL8N2I90HK
Aryzta also gave a strategic update, saying it wanted to
return to sustainable organic growth over the next two to three
years and improve its core earnings (EBITDA) margin to around
12.5% within the next two years, from 9% last year.
It said its board had confirmed the strategic focus on
Europe and Asia-Pacific and the decision to sell businesses in
North and Latin America.
"Our engagement with interested parties for these businesses
is progressing well," Aryzta said, adding the expected proceeds
should help to significantly reduce debt levels over the next
six to nine months.
Shareholders this month elected Urs Jordi as chairman of the
struggling company, which produces McDonald's burger buns. Jordi
has said now is not the time for Aryzta to consider selling up,
instead favouring restructuring the company. urn:newsml:reuters.com:*:nL1N2IV0MW
"Aryzta has had a tumultuous few years. ... The newly formed
board is committed to bringing this chapter in Aryzta’s history
to a close," the company said.
Aryzta, which owns the Cuisine de France brand, has endured
a tough few years, with falling sales made worse by the COVID-19
pandemic. It has also been weighed down by a huge debt pile from
an acquisition spree in Europe and the United States.
($1 = 0.8846 Swiss francs)
(Reporting by Silke Koltrowitz and Michael Shields. Additional
reporting by Oliver Hirt. Editing by Mark Potter)
((Michael.Shields@thomsonreuters.com; +41 41 528 3630; Reuters
Messaging: michael.shields.thomsonreuters.com@reuters.net))