(Bloomberg) -- Marel hf shares jumped after it received a non-binding initial proposal from John Bean Technologies Corp. to buy all the shares in the Icelandic food processing technology company for €2.4 billion ($2.6 billion).

The Chicago-based company proposed a valuation of €3.15 each for Marel’s 754 million shares, with a potential offer to be paid for with 25% in cash and the rest in JBT stock, according to a statement on Friday. An offer, which would include absorbing €827 million of Marel’s debt, may be made after due diligence and final approval by JBT’s board.

Marel’s stock rose as much as 31%, the most since at least 1996, and was up 23% as of 11:55 a.m. in Reykjavik. The Icelandic krona strengthened 2% after the news.

The Gardabaer, Iceland-based company was formed in 1983 by a group of engineers and quickly made inroads with scales for weighing fish aboard boats. It expanded through a series of acquisitions to include fish, poultry and meat processing systems with 8,000 employees in more than 30 offices and revenue of €1.7 billion in 2022.

Eyrir Invest, which holds 24.7% of Marel, has irrevocably agreed to accept an offer should it be submitted. That bid would then be conditional upon getting at least 90% acceptances, as well as shareholder and regulatory approvals. 

Earlier this month, Arni Oddur Thordarson resigned as Marel’s chief executive officer following a dispute with Arion bank over personal finances. 

The bank took over his shares in Eyrir Invest that had been pledged as collateral for a loan. Thordarson claimed that Arion bank was in the wrong and that he had taken the matter to the financial regulator, but was stepping aside so that “legal uncertainty” would not hurt the company, according to local media reports.

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