France's Limagrain offers to buy out seed maker Vilmorin

Vilmorin & Cie SA

28/04/2023 14:58

PARIS, April 28 (Reuters) - French agricultural
cooperative Limagrain has offered to buy the 28.78% of Vilmorin
 VILM.PA  it does not already own in a deal that values one of
the world's biggest seed suppliers at 1.43 billion euros ($1.57
billion).
    Limagrain said on Friday it was offering 62.60 euros per
Vilmorin share, a premium of 45.4% to the last closing price and
a level not seen in almost two years. Vilmorin's board said in
would recommend the offer to its shareholders.  
    After falling sharply at the start of Russia's invasion of
major grain exporter Ukraine, Vilmorin's shares have yet to
regain pre-war levels. 
    Limagrain said taking Vilmorin private would make it easier
to make long-term investment decisions in a highly competitive
industry and an uncertain economic climate.
    The low volume of shares traded, and the fact Vilmorin had
not raised capital on the market since 2010, also showed limited
value of the listing, Limagrain added.
    Vilmorin, whose history stretches back to an 18th-century
shop in Paris, has been listed in Paris since 1993. 
    It competes in seeds with likes of Bayer  BAYGn.DE  and
Syngenta, whose owner Sinochem Holdings Corp wants to list the
Swiss-based firm in Shanghai. Vilmorin says it is the world's
largest player in vegetable seeds.
    The share offer, subject to regulatory approval, is expected
to run between late June and mid-July, and will be financed by
bank debt, said Limagrain, which is based in central France and
has activities including bakery goods.
    Vilmorin shares were suspended from trading on Friday. 
    Reporting its third-quarter sales on Friday, Vilmorin raised
its target for full-year sales growth, though it said its
activity in Russia remained hampered by logistical difficulties
and sales in Ukraine hurt by a decline in plantings.
    ($1 = 0.9109 euros)    

 (Reporting by Gus Trompiz
Editing by Mark Potter)
 ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))