"Ingredion confirmed it had lodged the offer and said it "believes a potential transaction would deliver significant benefits to customers, consumers, employees and Ingredion shareholders". The Westchester, Illinois-based business added that it was "engaged in discussions and a period of due diligence with Tate & Lyle to further explore a potential transaction. Discussions are ongoing, and there can be no certainty that a binding offer will be made.""
"The FTSE 250 company said on Thursday that the Illinois-headquartered suitor had tabled a conditional 615p-a-share proposal, comprising 595p in cash and up to 20p in dividends. That represents a punchy 64 per cent premium to Tate & Lyle's closing price the previous evening and prompted an immediate scramble in the stock, which jumped 45.4 per cent to close at 545p. Even after that one-day surge, the shares remain well shy of the 800p-plus levels they were changing hands at three years ago."
"Under City Takeover Panel rules, Ingredion has until 5pm on 11 June either to put a firm offer on the table or to walk away. Tate & Lyle's board has indicated that the latest approach is one of a series of overtures from the same suitor, and stressed there is no guarantee that a binding bid will materialise."
Ingredion confirmed it is in advanced discussions with Tate & Lyle about a possible £2.7 billion cash takeover. Ingredion tabled a conditional 615p-a-share proposal made up of 595p in cash and up to 20p in dividends, representing a 64% premium to Tate & Lyle’s previous closing price. The offer prompted a sharp stock jump, though shares remain below levels seen three years earlier. Ingredion said a potential transaction would benefit customers, consumers, employees, and shareholders, and that discussions and due diligence are ongoing. Under takeover rules, Ingredion must either make a firm offer by 11 June or withdraw. Tate & Lyle’s board noted the approach follows earlier overtures and that no binding bid is guaranteed.
Read at Business Matters
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