Vilmorin soars on parent's buy-out offer

Vilmorin & Cie SA

02/05/2023 08:12

** ** Shares Vilmorin  VILM.PA  soar over 45% to 62.6 euros,
matching the price offered by its parent Limagrain to buy
remaining shares and take the French agricultural firm private
    ** Vilmorin on Friday confirmed its biggest shareholder,
which has a roughly 70% stake, had offered to buy the remaining
28.7% of shares at 62.6 euros, which constitutes a 45.5% premium
to Thursday's closing price of 43.05 euros
    ** According to Kepler Chevreux, the offer values Vilmorin
at 1.43 billion euros ($1.57 billion)  
    ** Vilmorin on Friday requested that trading in its shares
be suspended until May 2
    ** Vilmorin added its board has unanimously and favourably
received the simplified tender offer, adding Limagrain crossing
a 90% threshold would involve a delisting from Euronext
    ** 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 
    ** Vilmorin's low traded volume and ownership structure also
influenced Limegrain's decision, Jefferies flags, adding the
transaction should close by mid-July 
    ** Kepler Chevreux expects the offer to be successful, given
the dominance of the shareholder and the limited free float,
hence, it downgrades its 'buy' rating to 'hold' on the back of
the offer
    ** Separately, Vilmorin on Friday raised its revenue
objectives for 2022-23, now expecting growth of at least 12%
like-for-like as it posted higher Q3 sales  
    
($1 = 0.9102 euros)

 (Reporting by Olivier Sorgho and Michal Aleksandrowicz)
 ((Olivier.Sorgho@thomsonreuters.com))