Chief executive of Dole Food Company, Inc. wants to buy out company
Dole Food Company, Inc. will soon be acquired by David H. Murdock in a definitive merger agreement in which Mr. Murdock will buy complete control of the fruit and vegetable producer – which first introduced Hawaiian pineapples to the American population in the 19th century.
The chief executive of Dole, David H. Murdock Jr, will be buying all the shares he does not already own in the company for $13.50 per share.
This brings the total enterprise value of the company to around $1.6 billion.
The proposal represents an increase of $1.50 per share compared to the original proposal that Mr. Murdock made on June 10, 2013.
The Board of Directors of the company made an unanimous decision to approve the merger agreement, upon which Mr. Murdock will completely own the company. The transaction is subject to approval by the majority of other shareholders, excluding Mr. Murdock
Cash and equity will be contributed by Mr. Murdock himself, and he will also be receiving finance by the Deutsche Bank, Bank of America and The Bank of Nova Scotia.
The merger agreement provides the special committee with thirty days to evaluate and explore alternative options and find potentially higher offers.
The Dole transaction is expected to happen very soon
The transaction will likely take place towards the end of the fourth quarter of this year.
According to Dole:
“In connection with the proposed merger, Dole will file with the SEC and furnish to its stockholders a proxy statement and other relevant documents. This press release does not constitute a solicitation of any vote or approval in connection with the merger transaction, nor does it constitute an offer to purchase or a solicitation of an offer to sell shares of Dole common stock.”
The company strongly encourages stockholders to carefully read the proxy statement when it is released.