Oriflame’s Independent Bid Committee is advising shareholders to accept the proposed takeover by the Swedish direct sales company’s founders, according to a press release issued by the company.
However, the statement did reveal that the committee does not believe the offer made by Walnut Bidco, which is owned by the Af Jochnick family, to reflect the ‘full intrinsic value of the company’.
“The committee has concluded, on balance, that a potential long-term upside in the share price currently does not outweigh the short-to-medium term risks for the shareholders of the company associated with rejecting the offer. Accordingly, and in light of a significant premium, the committee has unanimously decided to recommend the shareholders of Oriflame to accept the offer,” reads the statement.
The acceptance period expires on June 24, 2019 and Walnut Bidco has stated that it will not increase its offer of SEK227 per share.