Cadbury shareholders accept Kraft offer

A large majority of the shareholders of Cadbury have accepted the 11.9-billion-pound takeover bid of the British chocolate maker by the American food major Kraft Foods.

As on February 2--the last day for accepting the Kraft offer--the American food company received "valid acceptance" of the offer from as 71.73 per cent of Cadbury shareholders, Kraft said in statement here today.

Kraft required only 50 per cent support from the Cadbury shareholders to take over the British confectionery major. The takeover will create one of the largest food companies in the world.

Out of 987.68 million Cadbury shareholders who accepted the buyout deal, a large majority of 732.86 million opted to receive more Kraft shares rather than cash, while only 59.69 million Cadbury shareholders opted to receive more cash, the statement added.

Accordingly, Cadbury shareholders who opted to receive new Kraft Foods shares will get 0.202664 new Kraft shares and 475 pence in cash per Cadbury share and those who want additional cash will get 799 pence in cash per Cadbury share, Kraft added.

Once the Cadbury-Kraft merger is over, the combined group will have dominant presence in markets across the world including India, and would have over 40 confectionery brands with each of them having annual sales in excess of $100 million.

On January 19, the Cadbury board had "unanimously" recommended the revised offer to its shareholders, worth about 11.9 billion pounds.

As per the revised offer, the US foods company would give 500 pence in cash and 0.1874 new Kraft stocks for every Cadbury share, Kraft said, adding for every Cadbury ADS holders  (American depository shares) Kraft would offer 2,000 pence in cash and 0.7496 new shares.

Moreover, Cadbury shareholders would also receive 10 pence for every share by way of a special dividend.

Meanwhile, Kraft Foods' takeover bid for Cadbury has already received European Union regulators approval, provided the US-based food major sells off the British confectioner's Polish and Romanian chocolate businesses.