Nomad Foods Announces Share Repurchase In Value Creation Move
Frozen foods manufacturer Nomad Foods has announced it is to repurchase 9.8 million shares owned by finds advised by Permira Advisers, in a move to 'create more value' for its shareholders.
The owner of Birds Eye and Iglo said that it has 'entered into an agreement to repurchase 9,779,729 of its shares beneficially owned by funds advised by Permira Advisers LLP at a purchase price of $10.75 per share'.
This represents a 25% discount to the closing price of Nomad Foods ordinary shares as of 9 June.
The company added that the transaction, 'which is 6% accretive to EPS, relates to a final settlement of indemnity claims against an affiliate of Permira, of legacy tax matters that predate its acquisition of Iglo Group in 2015'.
"Today's announcement represents a unique opportunity for Nomad Foods to create value for its shareholders," said Stefan Descheemaeker, CEO of Nomad Foods.
"We continue to have significant cash on hand and financial capacity to execute acquisitions, a strategic priority, and remain encouraged by the positive momentum in our business."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.