SANTIAGO – Britain’s ED&F Man Holdings Limited said on Monday it was launching tender offers for all the shares it did not already own of Chile’s Empresas Iansa and Inversiones Campos Chilenos.
ED&F Man, founded in 1783, currently has a 60.96 percent stake in Campos Chilenos, which, in turn, owns 42.74 percent of Iansa.
“The offers will represent a premium of 70 percent over the respective closing share prices of Iansa and Campos on June 19, 2015,” the British company said in a statement sent to the Santiago Stock Exchange.
The offer of 25.84 pesos ($0.04) per share values Iansa at 102.94 billion pesos ($163.4 million), and ED&F Man will have to pay 58.94 billion pesos (about $93.56 million) for the shares of the agribusiness company it does not already own.
ED&F Man’s offer of 33.03 pesos ($0.0524) per share for Campos Chilenos values that company at 30.87 billion pesos ($49 million), with 12.05 billion pesos ($19.13 million) to be paid for the shares of the investment company it does not already own.
Iansa produces and sells sugar and beet sub-products, among other businesses, while Campos’s main asset is its stake in Iansa.
The Santiago Stock Exchange halted trading in shares of Empresas Iansa S.A. and Sociedad de Inversiones Campos Chilenos S.A. for several hours after the tender offer was made.
“The Iansa offer and the Campos offer will be launched simultaneously by a wholly owned subsidiary of ED&F Man as soon as possible, but in any event no later than July 22, 2015, and will target all shareholders of both Iansa and Campos,” the British company said.
BTG Pactual is acting as financial adviser to ED&F Man on the tender offers and will manage the transactions.
Privately owned ED&F Man, which operates in 60 countries and employs around 4,000 people, trades agricultural commodities such as coffee, sugar and fish oil.