Share

Pioneer, which owns Liqui-Fruit and Sasko, is one step closer to Pepsi takeover

Pioneer Foods [JSE:PFG] says it is closer to fulfilling the conditions for its takeover by the US food and drinks giant PepsiCo for about R24.4bn. 

Pioneer, the owner of brands including Liqui-Fruit, Weet-Bix, Ceres, Sasko, and White Star entered into an agreement in July to sell all its shares to the global US food and drinks group for R110 per share in cash. 

The agreement includes a stipulation that none of three "material adverse events" take place, which have to do with Pioneer's profitability.

The JSE-listed food group, in an update to shareholders on Monday, said it had fulfilled two of the three conditions. First, it is not contemplating restating its audited financials.

Second, for the year to September 2019, it expects its consolidated earnings before interest, taxes and amortization, or EBITA, to be between R1.956bn and R2.056bn, within a range set out by PepsiCo in a previous joint circular. The US multinational had said Pioneer's consolidated EBITDA  for the 12 months could not be 10% lower than R2.055bn.

The last condition – which also has to do with EBITA – cannot be calculated yet. 

The acquisition has already been approved by the boards of both companies. Pioneer shareholder, meanwhile, will vote to proceed with the sale at the group's annual general meeting  on Tuesday in Cape Town. 

If shareholders pass the necessary resolutions on Tuesday, there are no court challenges and Pioneer fulfills all other conditions, the agreement will be finalised in the second week of February 20202.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
24.02
+0.4%
Rand - Euro
20.53
+0.3%
Rand - Aus dollar
12.33
+0.7%
Rand - Yen
0.13
+1.1%
Platinum
897.05
-0.6%
Palladium
997.25
-0.9%
Gold
2,154.19
-0.3%
Silver
24.89
-0.6%
Brent Crude
86.89
+1.8%
Top 40
65,784
-0.7%
All Share
72,007
-0.6%
Resource 10
52,906
-0.8%
Industrial 25
99,553
-0.9%
Financial 15
16,591
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders