Food deal

Devro recommends new offer from Dutch firm

Devro is based at Moodiesburn

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.

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