Danone raises offer for Lifeway Foods to $27 per share

In a letter updating on Danone’s (DANOY) proposed acquisition of Lifeway Foods (LWAY), which was disclosed in a regulatory filing, Danone stated that it was “disappointed by the Board’s response to our Proposal, which offers compelling value to shareholders, especially in light of the positive reaction to our Proposal by the market.” Danone’s letter added: “We remain convinced that a transaction with Danone will allow Lifeway’s shareholders to realize immediate value and to drive Lifeway’s continued development. We continue to believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size. While we have not been granted access to any due diligence yet, in the spirit of demonstrating our strong commitment to the Transaction and continuing to offer a compelling proposition to Lifeway’s shareholders, we are prepared to provide the Board with this updated non-binding proposal. Subject to the terms and conditions of our Proposal dated September 23, 2024, which otherwise remain unchanged, we would be prepared to pay $27 per Lifeway share, in all cash, for the entire share capital of the Company. This Updated Indicative Price implies a premium of 72% over the 3-month volume weighted average price as of the last full trading day before we submitted to you our Proposal on September 23, 2024. We believe that this Updated Indicative Price fully reflects the fundamental potential of the Company and provides Lifeway’s shareholders with the certainty of an attractive and immediate cash premium. We are committed to ensuring Lifeway’s shareholders are offered the opportunity to benefit from our compelling Updated Proposal, and hope you and the rest of the Board will act accordingly. We would welcome the opportunity to discuss this Updated Proposal and next steps with you.”