Seprod Directors Recommend That Shareholders Accept Musson’s Offer for Take-Over

• On January 19, 2024, the Directors of Seprod received a notice of the Take-Over Bid Offer from Musson Investments Limited (MIL) to purchase 13,948,000 ordinary shares in the capital of the company not owned by the Musson Group. The price being offered is J$78.00 per share.
• MIL is a wholly-owned subsidiary of Musson (Jamaica) Limited. Prior to the Offer, Associates of MIL collectively owned 366,772,031 Shares, representing 49.99978% of the total issued shares of Seprod. Musson (Jamaica) Limited then acquired 1,630 Shares, which caused the total percentage held to be increased to 50.00000%. This resulted in MIL making the Offer pursuant to the Jamaica Take-Over Code.
• After review of the Offer, Seprod’s Special Committee concluded that the Offer was fair to the shareholders of Seprod and recommended that the board of Directors issue a positive recommendation on same.
• The Board of Directors made its recommendation based on the following reasons: The Offer Price is reasonable in relation to the multiple of comparable trading companies and recent trading history, MIL does not intend to make any changes to the management or business of Seprod, and MIL does not intend to seek de-listing of Seprod.
• The Offer Price presents a 7.28% discount to the January 19, 2024, trading price of J$84.12. It also represents a 4.09% discount to the average trading price of J$81.33 for the last 30 days. The offer price implies a price-to-earnings (P/E) multiple of 16.50x above the Main Market Manufacturing & Distribution Sector Average of 15.38x.
• The Offer Circular outlined that the offer opened on January 24, 2024, and will close at 4:00 p.m. on February 15, 2024.

(Source: JSE)