Whole Earth Brands, Inc. (NASDAQ: FREE) is currently experiencing a significant surge on the US stock market charts. At the latest check within the ongoing session, Whole Earth Brands’ stock demonstrated a remarkable increase of 35.47%, reaching $4.76. This surge in FREE stock value is directly attributed to a takeover bid recently unveiled.
Whole Earth Brands (FREE) has officially announced its entry into a definitive agreement with Ozark Holdings, LLC, an affiliate of Sababa Holdings FREE, LLC (“Sababa”). According to the terms of the agreement, Ozrak (hereafter operating as Sweet Oak Parent) (“Sweet Oak”) will acquire all outstanding shares of the Company’s common stock that it does not already possess.
This purchase is set up as a complete cash deal, priced at $4.875 for each share of Whole Earth Brands. These conditions represent a large 56% increase over the Company’s stock price at the end of the market on June 23, 2023, before Sababa’s first offer of $4.00 for each share, and a significant 37% increase over the Company’s average price over 60 days as of February 12, 2024.
A specially chosen group from the Company’s board of directors, made up entirely of unbiased members, with advice from independent financial and legal experts, has fully recommended and approved the deal. After thoroughly considering different strategies, the company has decided that this deal is the best for all shareholders. It’s expected to bring the best outcome by maximizing value while also providing immediate cash at a considerable premium.
The agreement is scheduled to close in the second quarter of 2024. It is subject to a number of criteria, such as approval at a special meeting of the company’s shareholders, the support of the majority of the company’s outstanding stock and 66 2/3% of the company’s stockholders that is not held by Sababa, and other customary closing requirements. Crucially, no financing terms are attached to the deal.
For the fourth quarter and full year ending December 31, 2023, the Company intends to disclose its regular financial results in March 2024. Common stock of Whole Earth Brands will no longer be listed on the NASDAQ Stock Market following the completion of the transaction.