Dutch company launches takeover of OldTown for $487 million

Dutch company launches takeover of OldTown for $487 million
PHOTO: The Star/Asia News Network

KUALA LUMPUR - Dutch company Jacobs Douwe Egberts Holdings Asia NL B.V. has launched a takeover of OldTown Bhd for RM1.47bil (S$487 million) or RM3.18 a share.

CIMB Investment Bank, who is acting on behalf of JDE, said the takeover offer was 10.4 per cent higher than the last traded price of RM2.88 on Dec 7.

"The offeror (JED) intends to make the offer with a view to delisting and privatising OldTown.

"Based on the outstanding 463.239 million shares as at Dec 11 and the offer price of RM3.18 per OldTown share, the total outlay for the offer will be RM1.473bil," it said.

In a separate statement, Oldtown said the major shareholders owning 51.4 per cent of the shares have given their undertaking to accept the offer.

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JDE is a privately owned company incorporated in the Netherlands, which has a global coffee and tea business. Acorn Holdings B.V. has an indirect interest of approximately 73.07 per cent in JDE.

CIMB Investment Bank said to provide assurance of the funding required, US$370mil (or approximately RM1.512bil) has been deposited by JDE into an escrow account with a bank in Singapore in accordance with the terms of an escrow arrangement.

CIMB Investment Bank said the escrow fund cannot be released from the account other than for the permitted purposes of paying for the takeover of OldTown.

Founded in 1999, OldTown's principal activities of OldTown Group are of cafe chain operations and the manufacturing, marketing and sales of coffee and other beverages, including instant coffee mix, instant milk tea mix, instant chocolate mix and roasted coffee powder.


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