The Board of Directors of Sun-Rype Products Ltd. (
TSX:T.SRF,
Stock Forum) has recommended to shareholders they accept the $7.50 share acquisition proposed by Great Pacific Industries (
TSX:V.GPI,
Stock Forum) subsidiary SRF Acquisition Inc., with a view to taking the company private.
That suggestion has now been echoed by an independent proxy firm, Institutional Shareholder Services.
ISS released a statement saying, “A vote FOR is warranted based on a review of the terms of the transaction and, in particular, the significant premium, the favorable market reaction and no significantly noted governance concerns."
Great Pacific, a member of the Jim Pattison Group, is offering a 20% premium above average closing price, and currently owns 54% of the outstanding Common shares of SRF.
For the deal to go ahead, a majority of the minority shareholders must approve the acquisition.
According to Sun-Rype, “Subject to obtaining Court and all other required approvals as well as the satisfaction of all other conditions precedent, if Shareholders approve the Arrangement Resolution, it is anticipated that the Arrangement will be completed on or about September 30, 2013.”
Sun-Rype is a Kelowna, B.C.-based fruit juice and snack manufacturer and marketer.
Net sales in Q2 2013 were $36.8 million, down $2m from the same quarter in 2012. The company outlook is that shelf-stable juice, which makes up 60% of sales for the company, appears to be softening as a sector.