New Britain Palm Oil (NBPO) has welcomed a cash takeover bid of £1.1bn, subject to approval from shareholders, it has confirmed.

This comes after the Sime Darby Plantation offered £7.15 per share for the sustainable palm oil producer this morning, which has a plant in Liverpool.

The bid for the whole of the firm comes after Sime Darby had been in discussions to acquire 48.9% of NBPO, a move that had broken down, as revealed last week.

The company said that it would accept the offer subject to the fact that there was no superior offer, and shareholders approved.

The company said: “The proposed acceptance of Sime Darby’s intended offer will result in Kulim disposing its entire equity interest in NBPOL comprising 73,482,619 NBPOL’s shares at the offer price of GBP7.15 per NBPOL share for a disposal consideration approximately GBP525.40 million, which is equivalent to RM2.75 billion (based on current exchange rates).”

The offer is subject to certain conditions, including a minimum acceptance condition of 51%, no material adverse change to NBPO and certain regulatory approvals.

Antonio Monteiro de Castro, chairman of NBPO, said in a statement this morning: “The offer will provide an opportunity for all shareholders to realise their investment in NBPO at an attractive valuation and we also believe it represents a positive outcome for our employees, our customers and other stakeholders. 

“By joining the Sime Darby Group (following the successful completion of the offer), NBPO will benefit from having a strong, supportive partner to drive future expansion and growth in Papua New Guinea and internationally.”