Danone has increased its bid to buy US-based kefir and fermented probiotic products maker Lifeway Foods outright.
The French giant, which is already a minority shareholder in Lifeway, has tabled an offer worth approximately $27 per share.
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Earlier this month, Lifeway rejected an initial offer of $25 per share, arguing the bid “substantially undervalued” the business.
Danone said the new offer represents a 72% premium over the three-month volume-weighted average price of Lifeway’s shares as of the last trading day before the Activia maker’s initial proposal on 23 September.
At present, Danone holds about 23.4% of Lifeway’s common shares.
In a statement, Lifeway said it had received the “revised, unsolicited, non-binding proposal” from Danone and would weigh up the new offer.
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By GlobalDataIn a letter published on Friday, Shane Grant, Danone’s deputy CEO, wrote to Lifeway chair, president and CEO Julie Smolyansky in which he expressed “disappointment in the board’s response to the initial proposal”.
He said Danone believes that the sweetened offer “fully reflects the fundamental potential” of Lifeway and provides the US group’s shareholders “the certainty of an attractive and immediate cash premium”.
Grant said: “We continue to believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size.”
Danone’s interest in acquiring Lifeway comes amid a long-running family dispute over control and leadership of the company.
In August, Ludmila and Edward Smolyansky, Lifeway’s largest investors, filed a consent statement to unseat the company’s current board of directors, including CEO Julie Smolyansky.
Ludmila and Edward – the mother and brother of CEO Julie respectively – said at the time they were trying to bring in leadership “committed to revitalising the company with a strategic vision aligned with the best interests of its shareholders”.
When Lifeway rejected Danone’s initial bid, Ludmila and Edward said in a statement they strongly supported the group’s offer.
Just Food has asked the pair for a reaction to Danone’s latest offer.
