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Deals

Israel's Osem minority shareholders approve Nestle's buyout

The Nestle logo is pictured on the company headquarters building in Vevey, Switzerland February 18, 2016. REUTERS/Pierre Albouy

JERUSALEM (Reuters) - Minority shareholders in Israeli foodmaker Osem OSEM.TA approved Swiss food giant Nestle's NESN.S buyout offer, paving the way for completion of the deal.

Osem in a statement to the Tel Aviv Stock Exchange on Thursday did not provide further details.

Nestle last month offered 3.3 billion shekels ($857 million), or 82.5 shekels per share, for the Osem shares it does not own in a deal valuing the company at 9.13 billion shekels.

Nestle already owns 63.7 percent of the company, while institutions hold 7 percent.

Ahead of the vote, Israeli consultancy Entropy - whose clients are institutional investors - said the valuation Nestle offered is too low and less than other purchases by Nestle in recent years. Osem, Israel’s third-largest foodmaker, rejected the argument, saying the terms were fair.

Reporting by Steven Scheer

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