South African consumer goods group Tiger Brands has remained silent on reports it is continuing to pursue its proposed offer for smaller rival AVI, despite AVI’s board rebuffing the proposal.
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Earlier this month, Tiger indicated that it is considering making a cash and share offer for AVI of ZAR24 per share, implying a total equity value for AVI of ZAR8bn (US$793.6m).
In response, AVI’s board said in a statement that it was “unconvinced” by the “commercial merits” of the proposed offer.
“The board is of the view that any potential offer must adequately represent the future prospects of the company and be accompanied by a 100% cash underpin supported by a confirmation of funding,” AVI’s board said.
However, reports have suggested that Tiger is continuing to pursue the acquisition and has begun soliciting AVI’s shareholders.
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By GlobalDataWhen contacted by just-food, a spokesperson for Tiger said that the company was unable to comment on these reports.
“There is no formal deal on the table as yet,” the spokesperson said.
