Seven-Up bottling company has received an offer from its majority shareholder Affelka to buy out minorities for N19.33 billion ($60 million), Vice Chairman Sunil Sawhney has said.
Affelka has offered to acquire 171.5 million shares from minorities at N112.70 per share, an 18 percent premium to Thursday’s share price of N95.50.
Shares in the soft drinks maker, which opened for trade at N92.50, rose five percent on the news.
“As of now we have received an offer from the majority shareholder of the company. It’s a financial restructuring,” Sawhney reportedly told Reuters by phone.
He said the company has been making losses for some time, adding that the deal is aimed at restructuring the company, which distributes PepsiCo’s 7up, Pepsi and Mirinda brands of drinks.
Sawhney said delisting Seven-Up from the stock exchange after the takeover would be “logical”. The takeover is subject to shareholder and regulatory approvals, he said.
Earlier, Seven-Up said its board has received an offer from Affelka to acquire all outstanding shares that it does not currently own.