Netherlands' Jacobs Douwe Egberts (JDE) is acquiring Singapore's Super Group for S$1.45 billion, and will delist and privatize the company.
The instant food and beverage firm listed in Singapore is being bought in a deal that values Super shares S$1.30 each, a premium of 34 percent to the stock's last traded price of S$0.97.
JDE CEO Pierre Laubies said the acquisition is a key element of the company's 'global coffee strategy' and it will help the company expand into the strategically important Southeast Asian region.
Major shareholders in Super who have 60 percent stake in its total issued share capital, including Teo Kee Bock and Goi Seng Hui, have informed JDE they are accepting the offer.
"We are proud that JDE, the leading pure-play consumer packaged goods coffee company in the world, recognises the strength, depth and breadth of the company that we have so laboriously worked to build over the past 29 years. As the company enters its 30th year, we are pleased that Super will be part of the JDE Group as we continue to build on the legacy we have established," Super founder and managing director David Teo Kee Bock said, according to Today online.
Dutch coffee and tea firm JDE was formed by a joint venture between Mondelez International Inc and D.E Master Blenders. The company said it is "excited to continue to develop this amazing business within the global JDE platform."
"We have long been impressed by the quality and expertise of the team that built this great company under the leadership of Chairman Mr. David Teo Kee Bock," JDED said.
The Super Group was founded in 1987 and it manufactures and distributes branded consumer products, primarily instant coffee and tea. it has a portfolio of over 160 instant beverage and food products distributed in over 65 countries under multiple iconic brands such as Super, Essenso, OWL and Nutremill.