Tate & Lyle PLC (LSE:TATE) has agreed to a £2.7 billion takeover by US ingredients group Ingredion, confirming a deal that was first proposed last month.
Under the terms of the recommended acquisition, shareholders in the FTSE 250-listed group will receive 595p in cash for each share, and be entitled to retain a final dividend of up to 13.2p for the 2026 financial year and an interim dividend of up to 6.8p for the first half of the 2027 financial year.
Including those dividends, the offer is worth up to 615p per share, which is the same as was tabled by Ingredion last month.
Including the permitted dividends, the cash consideration values the sweeteners and food ingredients group at approximately £2.8 billion on a fully diluted basis, with an implied enterprise value of £3.8 billion.
The cash offer represents a premium of 58.7% to Tate & Lyle's closing share price on 13 May, the last trading day before the company entered an offer period. Including dividends, the headline premium rises to 64%.
Tate & Lyle shares were trading around 550p less than a year ago, before a profit warning in October.
Directors in the company have unanimously recommended the Ingredion deal after receiving advice from Goldman Sachs and Greenhill, which concluded that the financial terms are fair and reasonable.
Ingredion has already secured irrevocable undertakings to support the transaction from shareholders representing about 17.1% of issued shares, including commitments from directors.
The acquisition will be implemented through a court-sanctioned scheme of arrangement and remains subject to shareholder, court and regulatory approvals, including antitrust clearances.
