(AOF) – The Autorité des marchés financiers (AMF) declared compliant on June 20, 2023 the Simplified Public Tender Offer initiated by Limagrain Participations for the shares of Vilmorin & Cie. The AMF published on June 21, 2023 a notice of opening of the Offer, for an effective period from June 22, 2023 to July 17, 2023 inclusive. The Offer price of 62.60 euros per share was established by applying a multi-criteria valuation approach and notably reflects a premium of 45.4% compared to the last closing price preceding the announcement of the Offer on April 27 2023.
It also reflects a 36.7% premium to the volume-weighted average share price over the last 60 trading days preceding the announcement of the Offer.
As of June 20, 2023, Limagrain holds 77.37% of the capital and 86.31% of the theoretical voting rights of Vilmorin & Cie.
The Offer aims to allow Limagrain to regain greater freedom in its strategic choices, in particular with regard to its seed activities.
In a very competitive market and an uncertain macro-economic environment, the development of Vilmorin & Cie requires significant investments which will be more easily decided on and carried out as an unlisted company.
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Find out more about the Agrifood sector
Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSEs-SMEs, according to Ania (National Association of Food Industries). Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they have not been renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercereals, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity damper”, which are deemed insufficient. The organizations also deplore the failure of European negotiations to achieve a tariff shield to avoid distortions of competition. Agriculture and agri-food require a maximum ceiling price of €180/MWh, while many companies buy at prices above €500/MWh on the French market.