Treatt stock edges higher as shareholders reject Natara takeover bid

Sources close to the Suffolk-based company believe other potential buyers could present themselves but Treatt's Board is keeping an open mind on its future options as it focuses on reviving its global trade fortunes. The London share price nudged northwards on the news that the Natara bid had been kicked out.

The boards of both companies had agreed a deal but at a Court Meeting and the required General Meeting in relation to the scheme it failed to find favour with the minimum 75 per cent of stockholders.

Treatt directors have noted decisions by other shareholders to increase their stock since the original deal was agreed and it is within the bounds of possibility that a new offer might come in. Meanwhile Treatt plans to push for higher global sales figures.

Vijay Thakrar, Chairman of Treatt, says: "At the time of its recommendations on 8 September, and subsequently, 6 October, the Board had for some months carefully considered a potential combination of Treatt with Natara for the benefit of all stakeholders. The Board took into account Treatt's trading position, external market factors, the sentiment of the shareholders at the time and independent advice received on the financial terms of Natara's offer.

“Since its recommendations, the Board has observed changes in Treatt's share register, particularly Döhler Group SE's share purchases during the offer period up to its latest disclosed holding of 28 per cent of the issued share capital.

“Döhler is a highly valued customer of Treatt and, as would be the case with any major shareholder, we have been in dialogue with them in recent weeks to seek to establish their intentions in respect of their new shareholding.

“The Board particularly welcomed Dohler's statement on 30 September that it viewed Treatt as a high-quality company and recognised its strong position in the natural extracts and flavours market. Döhler is supportive of the strategy outlined by Treatt and looks forward to building a constructive dialogue with the Döhler executive management team. Döhler intends to hold its shares in Treatt for investment purposes.

“We will continue to execute our strategy to maximise shareholder value by focusing on three primary pillars: building on and enhancing our heritage; accelerating premium growth; growing in new markets. These pillars are underpinned by our established global position in serving the beverage industries, supported by our long-established brand and customer relationships and our well-invested infrastructure to support future growth.

“Although in the near-term the business continues to face the headwinds that we have previously communicated, the Board believes that improvements in market dynamics and execution of our strategy should support a recovery in Treatt's operating and financial performance.”