PURE.L Regulatory News (PURE)

18 Dec 2009 07:00

PURECIRCLE LIMITED

("PureCircle" or "the Company")

Significant Shareholders

PureCircle (LSE: PURE), the world's leading producer of Natural High Intensity Sweeteners, including Reb A, has today been notified of changes in Significant Shareholders.

On 18 December 2009, Olam International Limited ("Olam") has entered into a sale and purchase agreement to acquire the 13,272,305 shares in PureCircle held by Wii Pte. Ltd, a subsidiary of Wilmar International Limited at a price of £2.50 per share, for an aggregate consideration of £33,180,762 (the "Acquisition").

Following the Acquisition, Olam will own 30,544,609 shares in PureCircle representing approximately a 20% interest in the Company. 

In its own statement to the Singapore Stock Exchange today, Olam stated that "it has acquired additional interests in PureCircle as it believes the investment in the Company will lead to accretion of significant shareholder value in the long term for the following reasons:

Strong growth prospects of PureCircle: Since US Food and Drug Administration "Generally Recognised as Safe" clearance for high purity Reb A to be used as a food and beverage ingredient was granted in December 2008, a range of stevia-sweetened products have been launched in the US and performed well, securing strong sales. For example, stevia-sweetened "tabletop" products have secured 10% of the US table-top sweetener market. Similarly, sales of PepsiCo's SoBe Lifewater beverage flavours sweetened with Reb A, which were launched in 2009, are outperforming the category (Source: Nielsen). With continuing pressure for the reduction of calories in food and beverages, PureCircle's discussions with both current and potential clients have led to the expectation that such clients are planning launches of stevia-sweetened products and line extensions in a wider range and larger size in 2010 and 2011. Olam therefore believes that PureCircle will benefit directly from these expected product launches.

Strategic value for Olam: Olam is currently exploring several initiatives for developing the stevia leaf supply chain in countries where it has an active presence and where the agro-climatic conditions are suitable for stevia cultivation. In addition, Olam believes that there is potential to distribute Reb A and stevia-based tabletop products in markets where PureCircle does not have a direct presence today.

Following the Acquisition, PureCircle now becomes an associated company of Olam. The Company[Olam] intends to remain a long term investor of PureCircle and Mr. Sunny George Verghese, the Group Managing Director and CEO [of Olam] continues to serve as a non-executive director of PureCircle. "

Commenting on the changes in Significant Shareholdings, PureCircle CEO, Magomet Malsagov commented:

"We welcome Olam's increased participation in the development of both our company PureCircle and the wider global stevia industry. Since their first investment with us in July 2008 Olam have proved to be a strong supportive partner who we value highly, both at a Board level through the contribution of Sunny Verghese and the wider Olam organisation. We look forward to creating significant future value together for all our shareholders.

I would also like to take this opportunity to thank Wilmar for their contribution as a shareholder and partner to our progress over the past eighteen months."