Cadbury recommends tender for Japanese company

by Eric Schroeder
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LONDON — Cadbury Schweppes P.L.C. announced its subsidiary, Cadbury Investments Japan Ltd., has made a tender offer for all of the outstanding shares of Sansei Foods Co. Ltd., a Japanese functional candy company. Sansei, which sells sugar free functional candy in Japan under the Teicalo and Zylicrystal brands, accounts for approximately 4% of the Japanese candy market.

Cadbury has agreed to a tender offer price of 2,750 Yen ($22.26) per Sansei share, which would be a premium of 68.7% to the closing price of Sansei shares on the Osaka Stock Exchange on June 15. At that price, the issued share capital of Sansei would be valued at approximately 13.75 billion Yen ($111.3 million).

The tender offer is set to close on July 19 and will lapse unless shares representing at least 66.67% of Sansei’s issued share capital are tendered.

"Sansei’s sugar free high functionality products are complementary to Halls, and we see strong opportunities to develop them further in the Japanese market and potentially elsewhere," said Todd Stitzer, chief executive officer. "The acquisition of Sansei will further strengthen our presence in Japan, where we have gained significant gum market share since the Adams acquisition."

Cadbury purchased Adams Gum in 2003 for $4.2 billion.

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