Dole Food Company, the world largest fresh fruit and vegetable marketer, says it has reached an agreement with its chairman and chief executive David Murdock and will accept his improved offer of US$13.50 a share to take the group private.
Murdock currently holds a majority 40 per cent stake in the company and in June announced his intention to purchase the remaining shares for an opening offer of US$12 per share.
The latest improved offer values the company at around US$1.2bn, which accordiong to Reuters represents a 32 per cent premium on Dole's share price at the time of the initial proposal.
Murdock originally privatised a much larger Dole for US$2.5bn back in 2003, when he took on 76 per cent of its Dole shares for US$1.43bn plus an additional US$1bn of debt. He subsequently took the company public four years ago
Financing for the new deal will be provided in the form of cash and equity by Murdock, with the deal underpinned by Deutsche Bank, Bank of America and The Bank of Nova Scotia.
Murdock was Dole's chief executive from 1985 to 2007. More recently, he reprised the role following the departure of David DeLorenzo, stepping in to steady what was a struggling global business by overseeing the sale of its Asian fresh foods and international packaged goods divisions to Japanese conglomerate Itochu for US$1.7bn.
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