Mars Food Announces Open Offer After Tasty Bite Acquisition

Mars Inc. has made an open offer to shareholders of Tasty Bite after the U.S. confectionery giant announced plans to acquire the Indian company’s American parent Preferred Brands International on Tuesday.

Mars Food did not disclose the amount it’s paying Preferred Brands, but said the deal is expected to close by December, subject to regulatory approvals.

The deal triggered a mandatory open offer whereby the American chocolate maker offered to buy up to 6.61 lakh equity shares, or around 25.77 percent equity stake, from Tasty Bite's entire public shareholders at Rs 5,323.87 each, according to its exchange filing. The open offer is priced at a discount of 8 percent to the stock's current market price. It values the stake at Rs 352 crore, according to the filing.

An open offer for public shareholders is mandatory under the market regulator’s guidelines if a company acquires over 25 percent stake in a listed entity.

Tasty Bite, maker of ready-to-heat Indian and Asian meals, grains and noodles, generates most of its sales in North America, according to the company’s press release. It also sells products in stores in the U.K. and Australia. Most of its items exported to the U.S. are made in a facility in Pune, India. Preferred Brands is based in Connecticut.

Tasty Bite Eatables will remain listed on the BSE after the acquisition is completed, Mars Food said.