Unilever sees no basis for further talks after rejecting Kraft's USD 143bn offer
17 FEB 2017
Unilever [ULVR:L] [UNIA:AS] notes the recent announcement by The Kraft Heinz Company ("Kraft Heinz") [NASDAQ: KHC] that it has made a potential offer for all of the shares of Unilever PLC and Unilever N.V.
Their proposal represents a premium of 18% to Unilever's share price as at the close of business on 16 February 2017. This fundamentally undervalues Unilever. Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions.
Unilever PLC and Unilever N.V. recommend that shareholders take no action. Further announcements will be made as appropriate.
The proposal received was that Unilever common shareholders would receive USD 50.00 per share in a mix of USD 30.23 per share in cash payable in U.S. dollars and 0.222 new enlarged entity shares per existing Unilever share, which valued Unilever at a total equity value of approximately USD 143bn.
As at the close of business on 16 February 2017, a mix of USD 30.23 in cash payable in U.S. dollars and 0.222 Kraft Heinz shares per existing Unilever share would value each Unilever common share at USD 49.61, representing a premium of 18% to Unilever's share price.
As stated in the recent announcement by Kraft Heinz, in accordance with Rule 2.6(a) of the Code, by not later than 5.00 pm on 17 March 2017, Kraft Heinz must either announce a firm intention to make an offer for Unilever under Rule 2.7 of the Code or announce that it does not intend to make an offer for Unilever, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
As required by the Code, Unilever confirms that this announcement is not being made with the agreement of Kraft Heinz.
There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made.
Unilever's advisor are Centerview, Morgan Stanley, UBS and Deutsche Bank.