16th Feb 2023 10:55
(Alliance News) - Devro PLC on Thursday said it received an increased and "final" takeover offer from Saria Nederland BV, an indirect subsidiary of Saria SE & Co KG.
The Devro board recommends the offer for shareholder approval, deeming it "fair and reasonable" ahead of a general meeting on March 3.
Shares in Devro were up 6.4% to 326.20 pence each in London on Thursday morning.
The Glasgow, Scotland-based sausage casing manufacturer said the revised proposal would see its shareholders receive 320p in cash for each share from Saria Nederland, alongside a second permitted interim dividend of 10p.
This would value the total share capital of Devro at around GBP564 million on a fully diluted basis, implying an enterprise value of GBP692 million or 11.3 times enterprise value to earnings before interest, tax, depreciation and amortisation for the financial year that ended June 30, 2022.
Devro said it follows an agreement between the boards of Devro and Saria Nederland for a cash acquisition on November 25 last year.
After consulting its financial adviser Lazard, Devro's board recommended the proposed takeover to its shareholders, deeming the terms of the acquisition "fair and reasonable".
On January 13, Devro called a general meeting to take place on Thursday to approve the takeover, which has now been adjourned to March 3, in order to allow shareholders sufficient time to properly consider the revised proposal.
By Greg Rosenvinge, Alliance News reporter
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