Imperial Sugar Company and Louis Dreyfus Commodities have entered a definitive agreement under which a subsidiary of Louis Dreyfus Commodities will acquire Imperial Sugar through a cash tender offer and second step merger at $6.35 per share.
The $6.35 per share represents a 57% premium to Imperial Sugar’s closing stock price on 30 April, the last trading day prior to today’s announcement, and a 50% premium to Imperial Sugar’s trailing 30-day volume weighted average stock price.
The proposed transaction has been unanimously approved by Imperial Sugar’s board of directors, who have agreed to recommend that Imperial Sugar’s common shareholders tender their shares in the offer.
The all-cash transaction represents a value of approximately $203m, including the assumption of debt and pension liabilities.
John Sheptor, president and CEO of Imperial Sugar, said: “This is a compelling transaction that delivers significant value for our shareholders while offering financial stability and organisational resources to allow us to continue to meet the needs of our customers.”
Under the terms of the merger agreement, Louis Dreyfus Commodities will commence a cash tender offer no later than 11 May.
Source: Imperial Sugar