Lifeway Foods, Inc. announced on November 5, 2024, that its Board of Directors rejected the unsolicited proposal made by Danone North America PBC on September 23, 2024, to acquire all shares of Lifeway it does not already own for $25.00 per share. The Board determined that Danone's proposal substantially undervalues Lifeway and is not in the best interests of the Company and its shareholders.
In response to Danone's proposal and its substantial ownership position, the Board adopted a limited duration shareholder rights plan, effective immediately. This Rights Plan is intended to enable all shareholders to realize the full value of their investment in Lifeway and reduce the likelihood of Danone gaining control without paying an appropriate control premium.
Under the Rights Plan, rights will become exercisable if an entity acquires beneficial ownership of 20% or more of outstanding shares, or if an existing 20%+ owner acquires additional shares. The rights will expire on November 4, 2025, unless earlier redeemed, terminated, or exchanged.
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