Subscriber login Close [x]
remember me
You are not logged in.

Pernod shareholders back Allied acquisition

Published:  23 July, 2008

Pernod Ricard is on the verge of acquiring Allied Domecq after its shareholders approved a move to increase the group's share capital.

At an Extraordinary General Meeting (EGM) held on Thursday (30), Pernod Ricard shareholders granted the board of directors conditional authorisation to increase the group's share capital by nearly €55 million through the issue of 17.7 million Pernod Ricard shares. And on Monday, two meetings of Allied shareholders - one before the High Court of Justice in England and Wales, and the second at an EGM - produced overwhelming support, both achieving approval rates of 99.8%.

The acquisition will be effected by way of a Scheme of Arrangement, a procedure which guarantees the transfer of 100% of shares of the acquired company, provided that company's shareholders approve. If successful, Allied shareholders will receive 545p in cash and 0.0158 new Pernod Ricard shares for each Allied share.

The acquisition now requires approval from anti-trust authorities in Canada and the sanction of the Scheme by the High Court; once this is achieved, the Scheme will become effective by 26 July.

Allied chairman Sir Gerry Robinson said that approving the deal would provide shareholders with the ability to crystallise the value that has been achieved, and the possibility of continuing to participate in the future success of Allied Domecq's brands within an enlarged Pernod Ricard business'.

Chairman and CEO Patrick Ricard said: This major acquisition will make Pernod Ricard the world's second-largest wine and spirits group.'