London / UK. (js) J. Sainsbury PLC and Delta (Two) Limited are jointly providing an update on their discussions concerning the possibility of Delta making an offer to acquire all of the issued and to be issued ordinary share capital of Sainsbury´s which it does not already own, at a price of 600 British Pence in cash per ordinary share.
Sainsbury could be in the hands of its Qatari suitors by Christmas after the supermarket´s board now confirmed it had opened its books to Delta, a vehicle of the Qatari royal familyo, the state-backed fund which is planning a 10.6 billion GBP takeover bid.
However, investors appeared to retain some scepticism that a formal bid would emerge with shares rising by just two percent to 565 Pence, below the 600-Pence-a-share bid price.
The chief concern is whether Delta can secure agreement with Sainsbury´s pension fund trustees, who are thought to want between two billion GBP and three billion GBP in cash up front to underpin retirement benefits for the scheme s 85.000 members.
Commentators said Delta Two had a stronger position to cut a deal with the trustees having increased the equity in its offer to 4,9 billion GBP, and made clear it planned to retain ownership of Sainsbury´s valuable property portfolio. In a statement Delta said it would work «constructively» with the trustees to reach agreement.
The good news for Delta Two is that the Sainsbury family, who retain an 18 percent share in the company, appear to be comfortable with the 600-Pence-a-share bid price, particularly as the fund has confirmed plans to include a three-Pence-a-share dividend in respect of the period ending October 6th.
Delta Two is expected to take about three weeks to complete due diligence and an offer is likely to be put to be put to shareholders by mid October. The offer would take 60 days to complete, so that if everything runs smoothly it could be completed by mid-December (press release).
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland
- DPC Dash: reaches 900-store milestone in China
- Coffee Holding: Terminates Merger with Delta Corp Holdings
- Perkins Restaurant + Bakery: introduces new brand identity
- Engelmans Bakery: acquires St. Armands Baking Company
- National DCP: Breaks Ground on New Distribution Center