By Nqobile Dludla
JOHANNESBURG (Reuters) -South African food producer Premier Group has agreed to acquire all shares of RFG through a share swap deal in which RFG shareholders will take a 22.5% stake in the combined group, the companies said on Thursday.
Premier said RFG, a producer of convenience meal solutions such as Rhodes canned food and Bull Brand corned meat, would complement its existing portfolio of bakery, maize, rice and sugar and broaden its market reach.
Under the terms of the transaction implementation agreement, Premier will offer one Premier share for every seven RFG shares, based on reference prices of 154 rand ($8.88) per Premier share and 22 rand per RFG share. RFG shareholders will also receive a cash payment for any fractional entitlements, they said.
The deal, which is subject to regulatory and shareholder approvals, will result in the delisting of RFG from the Johannesburg Stock Exchange.
Premier’s brands include Blue Ribbon bread and Snowflake flour.
($1 = 17.3497 rand)
(Reporting by Nqobile Dludla; editing by Barbara Lewis)
