Private equity firm Elliott Capital Advisors said on Monday it made a proposal to Aryzta's board of directors to acquire all outstanding shares of the Swiss-Irish frozen baked goods maker for an indicative price of 0.80 Swiss francs (€0.74) per share.
The financing for the potential offer is available and refinancing arrangements for the company’s existing debt are at an advanced stage, Elliott said in a statement.
“We require the board of directors’ recommendation of our potential offer and the company’s support to finalise our refinancing arrangements,” Elliott said. It said the public tender offer would be subject to customary offer conditions to be specified by Elliott.
Aryzta confirmed on Monday morning that it had received a non-binding letter from Elliott. It said that the offer of 0.80 Swiss franc per share was subject to certain conditions, “some of which cannot be satisfied as a matter of fact”, and to Elliott being able to secure refinancing for Aryza.
It said that it will consider “all alternatives and select the optimum option for a sustainable future for the company”. The baked goods group had last month said that it had concluded discussions with Elliott on a mooted takeover offer.
Aryzta, whose products include buns for McDonald's burgers and Otis Spunkmeyer cookies, has been under pressure from activist investors for months as it generated losses well before the COVID-19 outbreak. Last week Kevin Toland stepped down as chief executive of Aryzta in a shake-up of management at the embattled baked goods company. (Additional reporting Reuters)
