October 17 (SeeNews) - Bulgarian cellulose producer Svilosa [BUL:3MZ] said on Wednesday that its board of directors has found the buyout bid of A.R.U.S. Holding a fair offer to the company's minority shareholders.
The offer, which targets a 6.74% stake in Svilosa, is priced at 4.7 levs per share ($2.8/2.4 euro) per share.
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The projections made in order to calculate the offer's price are realistic, Svilosa's board of directors said in a statement.
A.R.U.S. Holding owns a 80.67% stake in Svilosa directly. On October 10, A.R.U.S. Holding signed an agreement with Luxembourg-based KBD SA for joint management of Svilosa, in accordane to which A.R.U.S. Holding's direct and indirect stake in the Bulgarian cellolose producer increased to 93.26%.
After A.R.U.S. Holding carries out the buyout bid, it intends to delist Svilosa from the Bulgarian Stock Exchange.
The Financial Supervision Commission has not yet allowed publication of the buyout bid.
According to data from the commercial register, private individual Krasimir Dachev holds a 90% stake in A.R.U.S. Holding, while another private individual - Albena Badeva, owns the remaining 10%.
Svilosa, through its unit Svilocell, is the largest producer of bleached kraft pulp in Bulgaria.
(1 euro = 1.95583 levs)