Devro recommends new offer from Dutch firm
Meat casings firm Devro is recommending shareholders accept an increased and final takeover offer from Saria Nederland.
The Glasgow-based company’s board said shareholders would receive 320p in cash for each share from the Dutch firm, alongside a second permitted interim dividend of 10p.
This would value the total share capital of Devro at around £564 million on a fully diluted basis, up from the initial offer of £540m lodged last November and implying an enterprise value of £692m or 11.3 times enterprise value to EBITDA for the year ended 30 June last year.
The Revised Proposal represents a premium of approximately 71.9% to the closing price of 192p on 24 November, the last business day before the commencement of the offer period=.
Devro’s board said it considers the offer “fair and reasonable” and advises shareholders to vote in favour at a rescheduled general meeting on 3 March.
Shares in Devro were up 6.4% to 326.20 pence each in London on Thursday morning.
Saria Nederland is part of the German Rethmann group.