Foodcorp Fails to Lure Takers With Offer to Buy Back Bonds

New Foodcorp Holdings (Pty) Ltd., a South African food company, said it failed to attract a single valid offer to redeem its remaining euro-denominated debt to meet the terms of a takeover.

Foodcorp, which owns brands such as Glenryck canned fish and Nola mayonnaise, offered 101 percent of the face value for its 390 million-euro ($522 million) securities due March 2018 on May 17. Yields on the bonds was unchanged at 6.09 percent as of 4:51 p.m. in London, pricing the debt at 108 percent of face value.

Remgro Ltd.’s Rainbow Chicken, South Africa’s largest chicken producer, paid 1 billion rand ($100 million) for 64.2 percent of Foodcorp on April 29. The deal, supported by a 3.9 billion-rand rights offer underwritten by Remgro, broadened Rainbow’s range to include products from peanut butter to dog food. A change of control clause related to the bonds forced Foodcorp to make the offer to bondholders.

“Foodcorp did not receive any valid tenders of notes,” the company said in a statement today. Michael Holte Christensen, who helps manage the equivalent of $805 million in global high-yielding corporate debt at Jyske Bank A/S in Silkeborg, Denmark, said on May 17 the offer was too low.

Rainbow Chicken rose 2.8 percent to 15.88 rand at the close in Johannesburg, giving the company a market value of 9.9 billion rand. About 20,200 shares traded, or 8.6 percent the three-month daily average.