H. J. Heinz Company
) recently announced plans to redeem its outstanding convertible
preferred shares that are not converted to its common stock
before a stipulated date.
The decision was made in connection with Heinz's pending sale
to an investment group led by Warren Buffet's company,
Berkshire Hathaway, Inc.
) and private Brazilian investment firm, 3G Capital for $28
billion, including debt.
Heinz has offered holders of all 5,787 outstanding shares of
its Third Cumulative Preferred Stock, $1.70 First Series to
either receive the redemption price for their preferred shares or
to convert their preferred shares into Heinz common stock. The
company will redeem any outstanding shares of the concerned
series that are not converted into Heinz's common stock at or
before 5:00 pm eastern time on Apr 8, 2013. The preferred shares
will be redeemed at an aggregate redemption price of $29.03 per
share, which includes accrued and unpaid dividends in addition to
the redemption price.
Berkshire Hathaway, led by Warren Buffett, owns leading
businesses across a variety of industries, while 3G Capital is a
global investment firm holding stake in companies like fast food
Burger King Worldwide, Inc
). Both Berkshire Hathaway and 3G Capital are known to invest in
iconic businesses and brands and broadening them further.
Per the terms of the pending merger, Heinz's shareholders will
receive $72.50 per share, a 19% premium to its all-time high
share price. The deal is expected to be closed in the third
quarter of this calendar year. HNZ will become a private company
after the completion of the acquisition.
Heinz carries a Zacks Rank #3. Another food company that has
been doing well consistently is
ConAgra Food, Inc
) - Zacks Rank #1 (Strong Buy).
BURGER KING WWD (BKW): Free Stock Analysis
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
CONAGRA FOODS (CAG): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
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