Shares in British chocolatier Thorntons are rocketing by over 42% in the early trading session after Italian chocolate maker Ferrero confirmed that it has offered to buy out the company for £111.9 million ($US177.5 million).
The offer is at 145 pence per share. The stock price is now hovering around 144 pence per share. Shareholders have until July 13, 2015, to reject the offer, if they haven’t accepted the deal already.
However, it looks like Thorntons’ investors are in favour of the deal.
“Ferrero is offering our shareholders an attractive premium to the average price of Thorntons’ shares over the last three months,” said Paul Wilkinson, Chairman of Thorntons. “Although the prospects for Thorntons as an independent company remain strong as the Company embarks on the next phase of its strategy, the Board of Thorntons also recognises the potential benefits to the brand and the business, including employees and all stakeholders from combining with the Ferrero Group.
“Ferrero is a successful global confectionery business with a strong family heritage and as such represents a good cultural fit for Thorntons. The Board of Thorntons therefore has given its unanimous recommendation for the Offer from Ferrero.”