KWV was approached by Halewood International in December 2010, following an offer by Pioneer Foods to acquire KWV. The board of KWV has noted the ruling of the SRP.

In light of the fact that the Pioneer offer has been withdrawn, efforts of Halewood to avail itself of an alleged opportunity for equal access to competitively sensitive information about KWV appears inappropriate to the board.

The board is satisfied that there is no prospect whatsoever of any merger taking place between KWV and Halewood on the basis of the current suggestions by Halewood. The board has made this statement particularly in the light of the fact that HCI has acquired more than 25% of the company’s shares and has stated categorically that it will not favourably consider such a merger at this point in time.

In light of the foregoing, the board has resolved to take legal advice as to whether or not to appeal the SRP ruling.