P&G, Wella tender offer results

Procter & Gamble Germany Management, a wholly owned subsidiary of the beauty and health product manufacturer Procter & Gamble, today announced results from the initial tender offer for Wella shares.

P&G has now acquired 5,046,156 voting and 1,498,872 preference shares of Wella representing 11.43 per cent and 6.41 per cent, respectively, of each class of shares, or a total of 9.69 per cent of the registered share capital.

The initial tender period ran from 28 April to 28 May 2003. However an additional acceptance period, as required by German law, will run from 6 to 20 June 2003. P&G says the offer price of €92.25 per share for the voting shares and €65 per share for the preference shares will not change during this additional acceptance period.

Procter & Gamble's chief financial officer, Clayton Daley, said of the extension: "This additional two week acceptance period represents the final opportunity for Wella shareholders to accept P&G​'s tender offer. Beyond June 20, we are under no obligation to acquire any further shares. We will begin to pursue the business objectives we announced on March 18 as soon as the appropriate regulatory approvals are obtained, regardless of the number of shares tendered."​

The deal dates back to 17 March 2003 when P&G signed an agreement to purchase 77.6 per cent of the voting shares in Wella from its majority shareholders and announced its intention to launch a tender offer. On 18 March 2003, P&G announced its decision to launch a tender offer to all shareholders of Wella.

The deal is still subject to normal regulatory review and government approvals in various markets including the European Union and the United States of America.

Founded in 1880, Wella​ is a leading beauty care company selling its products in more than 150 countries. The company's three divisions include professional hair care, retail hair care, and cosmetics and fragrances. Some of its well-known brands include Wella, Koleston, Sebastian, Graham Webb and High Hair professional hair care lines; Wellaflex, ShockWaves, Ultra Sheen, and Vivality consumer retail hair care products; and Gucci, Rochas, Escada and Montblanc fragrances.