The deal must come in the form of a takeover recommended to shareholders prior to an emergency general meeting (EGM) that will take place in in Dübendorf, Switzerland in September.
As reported in The Irish Times, the company has received takeover approaches from third parties as part of a strategic review process, who have expressed an interest in acquiring the company’s entire issued share capital.
The EGM arises from attempts by a group of dissident shareholders to oust a number of directors in a bid to reverse the decline in shareholder value, which is down more than 85 per cent since late 2018.
The dissident investors, led by Swiss group Veraison and Aryzta’s largest investor Cobas, are seeking to oust Mr McGann and four other directors. The group holds 20.01 per cent of the voting rights of Aryzta.
In May, Aryzta appointed investment bankers Rothschild to carry out a strategic review of the group amid speculation it could be preparing to put itself up for sale.
The Dublin-listed company which owns the Cuisine de France and Otis Spunkmeyer labels has been struggling to halt a decline in earnings, particularly in the US, and negative investor sentiment towards its complex capital structure.
A spokesman for Aryzta said that Mr McGann does not believe that any form of contested process is in the best interests of the company as it works through the consequences of the shareholder group’s proposals and the economic consequences of the Covid-19 crisis.
Two other directors have also indicated that they will resign at the EGM – Dan Flinter, who is separately the chairman of the board of The Irish Times, and Rolf Watter.
