Nestlé to acquire remaining stake in Osem for $840m

Nestlé will acquire the remaining 36.32% stake it does not own from Israel-based listed food company Osem for $840m.

Nestlé agreed with Osem’s special committee of the board to purchase 40.2 million shares at a price of $21.02 (ILS82.50) per share.

Initially, Nestlé offered $20.3 (ILS80) per share in November. The transaction depends on approval of the minority shareholders of Osem.

Nestlé has invested in the Israeli company for more than 20 years. The Swiss food giant currently owns 63.7% in the firm.

It stated that it looks forward to continue to partner with the Osem management to develop the company.

Osem informed Tel Aviv Stock Exchange the deal finalisation will increase the value of the company to $2.32bn (ILS9.13bn).

Currently, Osem is reported to be valued at $1.8bn (ILS7.3bn) in the market.

Osem was quoted by Reuters saying: "Upon completion of the deal, the company will become a private company that is fully owned by Nestlé."

After completion of the acquisition, Osem will be delisted from the Tel Aviv Stock Exchange.

Osem was established in 1942 and is a producer and distributor of a wide range of high-quality branded food products.