Heinz to Redeem Preference Shares - Analyst Blog
March 12 2013 - 6:10AM
Zacks
H. J. Heinz Company (HNZ) recently announced
plans to redeem its outstanding convertible preferred shares that
are not converted to its common stock before a stipulated date.
The decision was made in connection with Heinz’s pending sale to
an investment group led by Warren Buffet’s company,
Berkshire Hathaway, Inc. (BRK.B) and private
Brazilian investment firm, 3G Capital for $28 billion, including
debt.
Heinz has offered holders of all 5,787 outstanding shares of its
Third Cumulative Preferred Stock, $1.70 First Series to either
receive the redemption price for their preferred shares or to
convert their preferred shares into Heinz common stock. The company
will redeem any outstanding shares of the concerned series that are
not converted into Heinz’s common stock at or before 5:00 pm
eastern time on Apr 8, 2013. The preferred shares will be redeemed
at an aggregate redemption price of $29.03 per share, which
includes accrued and unpaid dividends in addition to the redemption
price.
Berkshire Hathaway, led by Warren Buffett, owns leading
businesses across a variety of industries, while 3G Capital is a
global investment firm holding stake in companies like fast food
chain, Burger King Worldwide, Inc (BKW). Both
Berkshire Hathaway and 3G Capital are known to invest in iconic
businesses and brands and broadening them further.
Per the terms of the pending merger, Heinz’s shareholders will
receive $72.50 per share, a 19% premium to its all-time high share
price. The deal is expected to be closed in the third quarter of
this calendar year. HNZ will become a private company after the
completion of the acquisition.
Heinz carries a Zacks Rank #3. Another food company that has
been doing well consistently is ConAgra Food, Inc
(CAG) – Zacks Rank #1 (Strong Buy).
BURGER KING WWD (BKW): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
CONAGRA FOODS (CAG): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
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