Smucker begins Folgers exchange offer
October 08, 2008
by FoodBusinessNews.net Staff
ORRVILLE, OHIO — The J.M. Smucker Co. on Wednesday initiated an exchange offer for Procter & Gamble Co. common stock in connection with the previously announced merger of P.&G.’s Folgers coffee subsidiary with Smucker.
Under terms of the offer, P.&G. shareholders have the option to exchange none, some or all of their shares of P.&G. common stock for shares of Folgers at a 12% discount. Following the merger, each share of Folgers common stock would then automatically convert into the right to receive one Smucker common share.
The Smucker shares issued in the merger are expected to represent approximately 53.3% of Smucker’s outstanding shares after the acquisition. Meanwhile, P.&G. expects about 63 million shares of Folgers stock will be offered in exchange for shares of P.&G. common stock.
The exchange offer will expire at midnight on Nov. 5, and immediately be followed by the closing of the merger of Folgers and Smucker.