Elior shareholders on Tuesday 18 April approved the French catering group's acquisition of Derichebourg's DMS arm, in a deal to create a bigger outsourcing company.
Memorandum Of Understanding
The two groups announced a memorandum of understanding in December under which Europe's third largest catering company will acquire Derichebourg Multiservices (DMS) in exchange for new Elior shares at €5.65 each.
Doubled Stake
Under the deal to merge the services businesses of both groups, Derichebourg will double its Elior stake to 48.4%.
Shareholder Meeting Approvals
The shareholder meeting approved the contribution by Derichebourg of 30 million DMS holding shares to the group and the election of Daniel Derichebourg as director, paving the way for his appointment as chairperson and CEO of Elior.
Bernard Gault Replaced
Derichebourg will replace chairman and CEO Bernard Gault, who has held the position for 15 months.
Board Of Directors Meeting
"The Board of Directors will now meet to formally record the final completion of the transaction and to appoint Daniel Derichebourg as CEO in my place", Gault said in a statement.
French Caterer Elior's Shares Slide On Sales Miss
The above news follows news from earlier this year that Elior posted a smaller-than-expected rise in first quarter sales on Thursday 26 January as the French catering group renegotiates prices with clients, sending its shares 13% lower.
Europe's third biggest contract caterer reported revenue of €1.23 billion for the quarter through December, up 11.7% from a year earlier but still 1% below consensus cited by Citi analysts.
Read More: French Caterer Elior's Shares Slide On Sales Miss
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