Tate & Lyle PLC shares rose 27% to 476 pence before a trading halt for volatility on Thursday after Ingredion Incorporated put forward a proposal for a cash acquisition of the company.
Under the terms outlined in the proposal, Tate & Lyle shareholders would be eligible to receive up to 615 pence per share. That figure consists of 595 pence in cash plus the entitlement to receive a final dividend of up to 13 pence per share for the financial year ended March 31, 2026, and an interim dividend of up to 7 pence per share for the six months to September 30, 2026.
The company confirmed that the proposal follows recent press speculation and several prior approaches from Ingredion about a potential offer. Tate & Lyle said its board and Ingredion are currently engaged in discussions relating to the proposal.
Tate & Lyle noted that any dividends referenced in the proposal would only be paid to shareholders subject to the appropriate approvals from the board and shareholders and would be aligned with the company’s ordinary course timetable.
In line with UK takeover rules, Ingredion is required to either announce a firm intention to make an offer or state that it does not intend to make an offer by 5:00 pm on June 11, 2026. That deadline may be extended, but only with the consent of the Takeover Panel.
The company’s announcement was made without the consent of Ingredion. The statement added that there is no certainty that any offer will be made, nor is there certainty regarding the final terms on which any offer might be made.
Next steps in the process are set by the regulatory timetable and the discussions now underway between Tate & Lyle’s board and Ingredion. Shareholders and market participants will be watching for any firm statement from Ingredion ahead of the June 11, 2026 deadline or for any extension agreed with the Takeover Panel.
For now, the proposal has prompted significant market movement in Tate & Lyle’s stock and initiated a formal period of engagement between the parties while key approvals and timing remain subject to standard corporate and regulatory processes.