(Alliance News) - Newlat Food Spa announced Friday that it has halted negotiations for the acquisition of 100 percent of the capital of Princes Limited and its subsidiaries, after reviewing "the values initially proposed" that were rejected by the seller, Mitsubishi Corporation.

This was the reasoning, as detailed in the note issued: "Newlat Food has carried out a thorough analysis of the strategic integration of Princes and, partly in view of the difficult market environment in the United Kingdom, characterized by reduced demand and a sharp drop in inflation, which is expected to result in pressures on both sales volume and retailers' requests for price decreases, has deemed it appropriate to revise the values initially proposed in the offer. This latest offer was not accepted by the seller, Mitsubishi Corporation."

Newlat Food, however, "remains willing to re-evaluate the target" should the seller be willing to consider the sale again based on the last offer submitted.

The company thus confirmed its acquisitive profile and its continued pursuit of growth opportunities by external lines, "supported by an increasing availability of equity and the presence of important financial partners who were ready to give their full support to the group in the face of this great opportunity and who we are sure will not fail to support us in the future."

Newlat Food's stock on Friday closed 1.4 percent in the red at EUR7.67 per share.

By Chiara Bruschi, Alliance News reporter

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