Kerry Group's formal offer document for its #245 million (#192.9 million) recommended offer for Golden Vale has now been sent to the latter's shareholders, who have until August 2nd to accept the offer. The offer is conditional on getting 80 per cent acceptances by that date, although the closing date can be extended.

Kerry is offering Golden Vale shareholders a mix of cash and shares or a straight cash alternative. The cash and shares option offers one Kerry share for every 10 shares plus 13 cents in cash, as well an interim dividend of 1.26 cents and a special dividend of three cents if Kerry's offer is declared unconditional.

The cash alternative is #1.50 a share plus the interim and special dividends, worth a combined 4.26 cents a share. Although the value of the cash and shares option will vary with movements in Kerry's share, the current price in the market means both options have almost the same current value.

Kerry has said the takeover will be earnings-enhancing. But the offer document does not give any details on the anticipated savings Kerry intends to generate. In its letter to its shareholders, the Golden Vale board said it was disappointed by its share price, despite the strong improvement in recent trading.