(News Bulletin 247) – Vilmorin will leave the Paris Stock Exchange after the success of the takeover bid by its majority shareholder Limagrain, which now holds more than 90% of the seed company’s voting rights and capital.

The simplified takeover bid launched on the world’s fourth-largest seed company Vilmorin by its majority shareholder Limagrain has been crowned with success, the Autorité des marchés financiers (AMF) announced in a press release on Tuesday, paving the way for its withdrawal from the Parisian coast.

“At the closing of the simplified takeover bid, the Limagrain group therefore holds 21,932,953 Vilmorin & Cie shares representing 37,580,435 voting rights, i.e. 95.70% of the capital and at least 97.17% of the rights vote of this company”, indicated the AMF.

The agricultural cooperative Limagrain, majority shareholder of the group, has thus exceeded the thresholds of 90% of the voting rights and the capital necessary to withdraw Vilmorin from the listing.

Limagrain, owned by 1,300 farmers in central France and present in 57 countries, indicated at the end of April its intention to withdraw the seed company from the stock market in order to invest more freely in this activity.

This project “aims to allow Limagrain to regain greater freedom in its strategic choices, in particular with regard to its seed activities”, had then indicated in a press release the group, which intends to continue to expand, with online targets the adaptation of production to climate change.

“The seed business, with its selection cycles, is part of a long time that does not necessarily correspond to the rhythm of the stock markets”, continued Limagrain, “the development of Vilmorin & Cie requires significant investments which will be more easily decided and carried out as an unlisted company”.

Vilmorin “no longer an interesting long-term stock market product”

If “the stock market is a great tool when you want to raise funds”, Vilmorin was no longer “an interesting stock market product in the long term”, had advanced in early June to the press the president of Limagrain Sébastien Vidal.

“There is little movement, we had a fairly low price, it no longer really made sense to have this quotation”, he added, considering that “the word must remain with the peasants for all that concerns the strategic line”.

Following the closing of the takeover bid on Monday, Limagrain acquired some 4.2 million shares “at a price of 62.60 euros”, specifies the AMF. “This price values ​​Vilmorin & Cie at 1.43 billion euros for 100% of the capital,” Limagrain indicated when the takeover bid was announced.

The suspension of Vilmorin’s listing “is maintained pending the implementation of the squeeze-out”, said the AMF on Tuesday.

(With AFP)