D.E. Master Blender 1753 (DEMBF) is a international coffee and tea company located in the Netherlands. The company's coffee and tea products are available in over 45 countries around the world. It offers a full range of hot drinks through its state of the art machines which can be bought through supermarkets, hypermarkets and international buying groups. The company Out of Home customers range from multi-national organisations to small, family firms that the company supplies directly or indirectly through its distribution networks. D.E. Master Blender had EUR 2.7 billion in sales and 70% of revenues come from markets where the company is number one and two.
Company History
The company has been in the coffee and tea businesses for over 260 years. It has become the best blender maker and continues to enhanced the way we enjoy coffee and teas.
Buyout Offer
On June 19, 2013 Oak Leaf B.V. made an offer to acquire all outstanding shares of D.E. Master Blender. Oak Leaf offer was subjected to the minimum acceptance level of 95% of shares outstanding, but it could be lowed to 80% if shareholder voted for a buyout or merger and received a waiver from there credit facility lenders. In early September Oak Leaf announced that the minimum acceptance level had been lowered to 80%. On September 25, the post-closing period ended and the Oak Leaf received 95.27% of shares outstanding. By get more than 95% Oak Leaf will be allowed to commence a statutory buyout for minority shareholders. D.E Masters share ceased to trade on the Euronext exchange on October 25, but ADR over the counter will continue to trade until the statutory buyout is done.
Oak Leaf will pay EUR 12.50 per share for D.E. Master Blender shares and pay that same price for ADR's on the over the counter market. That is only if Oak Leaf receive approval for the statutory buyout by the Enterprise Chamber of Amsterdam Court of Appeal.
Statutory buyouts can take up to 7 to 12 months to complete. D.E. Master closing target date would be June 2014 to November 2014. Using November 2014 as the closing date, the potential return would be 11% or more. The legal counsel for Oak Leaf believe that it will only take to 5 to 9 months to complete. Oak Leaf legal counsel believe the target date would be April 2014 to August 2014. By using August 2014 as the closing date the potential return would be 18%.
Buyout Valuation
Oak Leaf buyout of minority shareholders for EUR 12.50 or in USD $17.33 per share. The only risk is the potential devaluation of the EURO. The potential return is somewhere between 11% to 17% over the next one and a half months.
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