Procter and Gamble announces final proration factor

Procter and Gamble (P&G) has announced its final proration factor of 7.89144 per cent for shares tended.

The figure relates to the related exchange offer in connection with the separation of the company’s Folgers coffee subsidiary.

It now means that a total of over 484 million P&G common shares were validly tendered in exchange of over 63 million shares of Folgers common stock.

The figure comes following a previously announced merger between Folgers and the JM Smucker company, with Folgers surviving as a wholly owned subsidiary of Smucker.

Under the terms of the resulting offer from the merger, 1.6342 shares of the coffee subsidiary were exchanged into the right to receive one Smucker common share, of which one represents approximately 53.5 per cent of the outstanding common shares.

As a result of the transaction, P&G has now said that it expect to gain approximately $0.63 (0.41 pounds) per share from the deal, an increase of $0.13 per share from the previous estimate.

The company has also said that it expects earnings per share of between $1.58 and $1.63 for the October to December quarter.

P&G are set to announce the final gain on the transaction as part of its December quarter results report, currently planned to be on January 30th next year.