Update: 18 February 2015
SHV for Nutreco (NUO NA)
Nutreco: Extension to the offer 1% to 3% annualised
This is an update to a prior note
SHV announces that it is uncertain at which point in time the Ukrainian competition authority will take a decision to clear the merger.
SHV says that the competent body of the Ukrainian competition authority is expected to convene before the end of February 2015 and the Offeror has not been notified of any substantive concerns with regard to its notification in Ukraine.
Nutreco is extending completion of the deal but there is negligible risk that the merger is cancelled.
We understand that the business in the Ukraine is a JV worth about €15m.
The deal will not collapse over clearance of a jurisdiction with such small impact on the entirety of the operations acquired.
The offeror expects Ukraine authorities to meet by the end of the month, which could mean clearance and then completion of the deal by late March is still possible. (Settlement in Holland takes about 10 trading days).
As for Bosnia, the statement indicates that clearance may be waived. If Ukraine does not comeback with a response by 28 April, we believe SHV will also waive that clearance condition
For this reason we do not believe that a large withdrawal of acceptances could take place
If the Ukraine does meet and clears the deal late February, the deal spread is 3% annualised, if the deal completes 28 April (the latest permitted under Dutch law) the annualised spread is 1%
PDF attached