News blog
Glisten
- BY: Andrew Hore |
- POSTED: 10/02/2010 |
Confectionery and snacks maker Glisten is recommending a bid from Finland-based Raisio.
Raisio will own 85% of the bid vehicle with Glisten’s chief executive and finance director, Paul Simmonds and Robert Davies, owning the other 15%. The 140p a share bid values Glisten at £19.8m.
The share price rose 47p to 133.5p on the back of the news. High debt levels have put a dampener on the share price over the past couple of years. Debt was £25.2m at the end of June 2009 and net debt rose to £28.1m at the end of January 2010 – although that is near to a seasonal peak. However, £1.7m of bank charges are due to be paid before the end of June 2010. Glisten will also pay £450,000 to avoid issuing warrants to the bank.
After a strong start to the current financial year, trading has been hit by the poor weather since the beginning of 2010. Overall, trading is in line with expectations.
The bid values Glisten at 8.5 times FinnCap’s earnings forecast for the year to June 2010.
Owners of the majority of the shares have accepted the bid but they are able to withdraw acceptances if a competing of at least 155p a share is made.
Raisio produces cholesterol lowering drink Benecol as well as other food products and animal feed.
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