Japanese group Sumitomo Corporation has secured the final necessary approval to take over Fyffes, paving the way for the tropical fruits distributor to delist after 3½ decades on the Irish Stock Exchange.
The High Court approved a so-called scheme of arrangement on Thursday that will give effect to the €751 million takeover. The deal, first announced in early December, had been backed by Fyffes shareholders and competition officials in the European Commission in the past four weeks.
Shareholders registered as of the close of business on Thursday will receive a two cent final dividend on 2016 earnings that comprises part of Sumitomo’s €2.25 per share offer for Fyffes. The stock will be suspended on Friday morning and cancelled on the Dublin and London bourses on Monday.
Shareholders will receive payment for their stock on March 2nd, Fyffes said in a statement on Thursday afternoon. Fyffes executive chairman David McCann and other top executives have agreed to remain with the company and will shares as much as €3 million of bonus payments this year following completion of the deal.
Mr McCann’s grandfather, Charles, set the foundations for the group when he opened a fruit-and-vegetable shop in Dundalk in 1902. The McCann family are set to receive €87.5 million for their almost 12 per cent stake in the business.