INTERNATIONAL. Constellation Brands has told Vincor shareholders they should question the Vincor board’s rejection of an offer to buy all outstanding shares at CAD$31.00 (US$26.06) each.
Richard Sands, Chairman of global beverage company Constellation Brands said: “The question Vincor shareholders should ask themselves is simply whether they choose to benefit from Constellation’s immediate all-cash offer or accept the continued risk and uncertainty of the board’s promises.”
He added, “The Vincor board’s response to Constellation is not based on performance but only on their expectations, their plans and prospects that only they can see.
“Vincor’s board remains entrenched in the position it took even before we announced our CAD$31 (US$26.06) per share cash offer. Its reasons were flawed then and are flawed now, yet Vincor’s board continues to reject the only existing value-enhancing alternative for its shareholders.”
Vincor owns a host of new world wine brands, including popular duty free line Inniskillin. Vincor’s board unanimously agreed that the bid did not reflect the underlying value of the business and said the offer was “opportunistic and disadvantageous” to shareholders.
Mark Hilson, Chairman of the Board and of the Special Committee of Independent Directors at Vincor, said: “We believe that this offer significantly undervalues the business operations of Vincor”¦ the Board recommends that Vincor shareholders do not tender their shares to Constellation’s inadequate offer.”
Constellation Brands commenced the cash takeover bid on 20 October 2005 and the offer is due to expire on 28 November 2005.
Vincor International announces 2006 second quarter fiscal year results
Vincor International has reported promising net sales for the three months to 30 September, climbing by +10% on a like-for-like basis to C$182.6 million (US$153.4) million. Organic sales growth reached +6%.
Net income for the second quarter of fiscal 2006 was C$14 million (US$11.8 million) compared with C$10.9 million (US$9.2 million) for the same period last year.
MORE STORIES ON VINCOR INTERNATIONAL AND CONSTELLATION BRANDS
Inniskillin owner Vincor is subject of C$900 million offer from Constellation – 27/09/05
