Shareholder moves to derail Unigate deal
9 March 2000
Shareholder moves to derail Unigate deal
ATTEMPTS are being made by a small shareholder to derail the recommended purchase by Dairy Crest of Unigates milk and cheese business.
John Royden is urging small Unigate shareholders to put forward resolutions to reject the deal and accept an alternative plan, reports the Financial Times.
He asks small shareholders visiting his website to write to Unigate in his support.
Mr Roydens plan would mean Unigate demerging Wincanton Logistics, its transport business, and gearing up for a further investment of £200m and buying the whole of Dairy Drest.
To call an extraordinary general meeting Mr Royden needs the support of shareholders with 10% of the voting right.
Unigate finance director John Worby told the FT: “We believe the Dairy Crest deal is very good for shareholders.
“It has received very positive comments from those we have spoken to.”
Under the deal agreed by the two boards Dairy Crest would issue almost 76m new shares to Unigate shareholders and take on £100m debt.
Dairy Crest shareholders would have 60% of the enlarged group, and Unigate 40%.
- Back dairy protest, farmers urged, FWi, 23 February, 2000
- Dairy Crest in Unigate merger, FWi, 20 February, 2000
- Financial Times 09/03/2000 page 26