22nd Jun 2015 14:23
LONDON (Alliance News) - Shares in Thorntons PLC soared Monday after Italian chocolate maker Ferrero International SA said its subsidiary Ferholding UK Ltd has made a GBP111.9 million recommended offer for the struggling UK chocolate maker and retailer, at 145 pence per share.
Shares in Thorntons were trading up 43% at 144.84 pence Monday afternoon.
Ferrero said that on Monday Ferholding acquired the entire holding in Thorntons of AIM-listed Crystal Amber Fund; the entire holdings of former Thorntons Chairman John von Spreckelsen, current Thorntons Chairman Paul Wilkinson, Chief Executive Jonathan Hart along with that of his wife and children; the majority of the holding of Chief Financial Officer Michael Killick; and all of the holding of investment manager Hotchkis & Wiley; plus a further 3.3 million shares in the company.
Ferrero later said Ferholding now owns 38.98% of Thorntons' issued share capital, and now either owns or has received irrevocable undertakings to accept the offer in respect 39.20%.
Ferrero said that the offer now constitutes a mandatory cash offer for all of Thorntons.
Ferrero makes confectionary brands including Ferrero Rocher, Raffaello, Kinder, Nutella and Tic Tac mints.
In May, Thorntons had announced that Hart will resign from his role as chief executive on June 27, to be replaced by Bloomer on an interim basis until a permanent successor was found.
The company has been struggling of late as its so-called fast moving consumer goods unit, which sells chocolates through other retailers, has been hit by lower orders from some UK grocers as well as issues at its own new centralised warehouse operation.
In March, Thorntons reported a drop in profit in the first half of its financial year, with FMCG sales declining 11.2%, contributing to an overall sales fall of 8.2% and leading it to give a cautious outlook for the full year.
"Ferrero is offering our shareholders an attractive premium to the average price of Thorntons' shares over the last three months. Although the prospects for Thorntons as an independent company remain strong as the company embarks on the next phase of its strategy, the board of Thorntons also recognises the potential benefits to the brand and the business, including employees and all stakeholders from combining with the Ferrero Group. Ferrero is a successful global confectionery business with a strong family heritage and as such represents a good cultural fit for Thorntons. The board of Thorntons therefore has given its unanimous recommendation for the offer from Ferrero," Thorntons Chairman Wilkinson said in a statement Monday.
"This transactions brings together two highly complementary businesses, but more importantly it unites two companies that share the same passion for growing brands, and a proud heritage, drive and culture built upon their family foundations," Ferrero Chief Executive Giovanni Ferrero said.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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Related Shares:
Crystal Amber