Nestlé to buy the rest of Israeli food giant Osem for $840 mn
04 February 2016
Swiss food giant Nestlé SA today said that it would buy the rest of Osem for about $840 million and delist the Israeli food maker from the Tel Aviv Stock Exchange.
Nestlé, which currently does not own 36.3 per cent stake in Osem, has reached an agreement with the company's special board committee comprising of its independent directors - to recommend a price of ILS 82.50 per share, a premium of 26 per cent to the company's yesterday closing price.
The transaction is subject to approval of Osem's minority shareholders.
Nestle first acquired a stake in Osem in 1998, and continuously increased its stake to nearly 58.8 per cent in 2012. It again hiked its stake to 69.3 per cent in 2013 by purchasing an additional 4.99 per cent from Osem chairman Dan Propper.
Osem, Israel's largest publicly-traded foodmaker, operates 10 different production facilities in Israel, and distributes its products through its distribution centers. It is lso one of the largest food manufacturers in Israel with a product line which boasts of nearly 1,000 varieties of cookies and cakes, candies, savouries, wafers and sauces among other things.
In 1995, Osem started to market Nestlé's products like coffee, chocolate, and breakfast cereals.
The company exports its produce to Europe and the US through its overseas subsidiaries: Osem UK Ltd and Osem USA Inc.