Mexican bottler and retailer company Fomento Economico Mexicano (Femsa) (FEMSAUBD.MX) offered to buy Swiss kiosk operator Valora (VALN.S); in a 1.1 billion Swiss franc ($1.15 billion) all-cash deal as part of its push to expand in Europe.
Femsa, which had total sales of more than $27 billion last year, made an offer of 260.00 francs per share. A premium of 52% to Valora’s last closing share price, Valora said in a statement.
Ernst Peter Ditsch is Valora’s largest shareholder, with a 16.91% stake as of July 4, according to Refinitiv data.
Credit Suisse is advising Femsa and is its offer manager, while J.P. Morgan is advising Valora on the deal.
The transaction is to be fund with Femsa’s available cash on hand, the two companies said. The offer, which remains subjected to regulatory approval, is expected to close in end-September or early October.
Shares in Valora traded 50% higher at 256.50 Swiss francs shortly after the market opened.
Vontobel analyst Pascal Furger said Valora had “struggled to create value for shareholders for several years” and the tender marked a good move for both shareholders as well as the firm.
–Reuters.
