Japanese trading house and a trading unit of Toyota Motors, Toyota Tsusho Corp, today agreed to buy a minority stake in CFAO from French luxury and retail group PPR. It will later launch an open offer for the remaining stake of the Africa-focussed distribution company.
Tokyo-based Toyota Tsusho will acquire a 29.8-per cent stake in CFAO at €37.50 per share in the beginning of August and launch a voluntary public tender offer in September for the remaining shares at the same price, valuing the Paris-based company at €2.3 billion ($2.79 billion).
Toyota Tsusho will perform a due diligence on the non-automotive businesses of the CFAO Group, and has agreed to pay a termination fee of €50 million to PPR if it does not file a voluntary tender offer by 15 September.
The offer is conditional on the European antitrust regulators clearing the deal.
CFAO is a leader in automotive and pharmaceutical distribution mainly in Africa and French overseas territories. It also produces and distributes beverages and plastic products, and provides integrated IT products and solutions.
The company operates in 34 countries, 32 in Africa and 7 in the French overseas territories, employing over 10,000 employees and reported 2011 revenues of €3.1 billion.