DuPont succeeds in Danisco bid

US chemical group DuPont has successfully completed its tender offer for Danisco, as 92.2 percent of outstanding shares in the Danish food ingredients firm were tendered by Friday’s deadline, DuPont said on Monday.

The takeover offer of DKK700 per share values Danisco at $6.49bn, up from an initial offer of DKK665 or about $6.3bn in January, which also required 90 per cent of shares to be tendered in order for the acquisition to proceed. The deadline was extended twice as shareholders held out for a better price – and by the time the last deadline expired on May 2, DuPont estimated that only about 48 per cent of shares had been tendered, prompting it to raise its bid.

The success of the latest offer relied on 80 per cent shareholder acceptance by 11pm Central European Time (5 pm US Eastern Time) Friday.

DuPont chairman and CEO Ellen Kullman said in a statement: "We are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont…These businesses will work together to drive sustainable growth and market-driven innovation by linking agriculture, nutrition and advanced materials through industrial biosciences. In addition, the R&D combination of DuPont, Danisco and Genencor will enable us to further respond to global megatrends and help provide for the food, energy and protection needs of a growing population."

Danisco chairman Jorgen Tandrup said: “DuPont and Danisco share cultures based in exceptional science and research capabilities. Our combined strengths in biosciences and nutrition and health will deliver innovative new offerings for customers worldwide, while helping to grow these businesses in ways that will benefit employees, shareholders and the communities in which we serve."

Earlier on Monday, trading in Danisco shares was suspended on the Copenhagen stock exchange ahead of DuPont’s announcement of the bid result.

Danisco’s share price was recently up 1.15 per cent to DDK701, after closing Friday at DDK693.

The most recent bid of DKK700 per share, which Kullman described as DuPont’s “best and final offer” in a statement last week, turned out to be more in line with major shareholders’ expectations. DSM, which had a 4.95 per cent stake in Danisco, and Danish pension fund group ATP, which held 5.1 per cent of shares, both signalled intentions to tender their shares on May 3, the day after DuPont’s DDK700 offer was announced.

The final offer deadline was also in line with the rules of the Danish financial market authority, Finanstilsynet, which allows for no more than three extensions.