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Bulgarian regulator suspends Pabolux buyout bid for Belovo Paper Mill

Author Mario Tanev
Bulgarian regulator suspends Pabolux buyout bid for Belovo Paper Mill Financial Supervision Commission/All rights reserved.

SOFIA (Bulgaria), August 8 (SeeNews) - Bulgaria's financial regulator said it has temporarily suspended the publication of a buyout bid by Luxembourg's Pabolux for the remaining stake in Bulgaria's Belovo Paper Mill [BUL:58B] it does not already own.

Pabolux's buyout offer is targeting 436,858 Belovo Paper Mill shares, the Financial Supervision Commission said in a statement on Tuesday.

The regulator did not disclose further details.

The targeted shares represent a 7.61% stake in Belovo Paper Mill, according to data from the Bulgarian Stock Exchange.

Last month, Pabolux said it is planning to launch a buyout bid for Belovo Paper Mill, priced at 2.25 levs ($1.34/1.15 euro) per share.

The deadline for accepting the offer will be 28 days since its publication.

After completion of the buyout bid, Pabolux intends to delist Belovo Paper Mill from the Bulgarian Stock Exchange.

Pabolux will also consider increasing Belovo Paper Mill's capital, depending on the need to finance the paper mill's investment programme or outstanding debt.

Pabolux currently owns directly 3,403,594 Belovo Paper Mill shares, representing 59.21% interest. Pabolux increased its stake in the company by 24.32% on June 28, when it purchased 1,398,425 Belovo Paper Mill shares for an undisclosed price.

Pabolux owns a further 33.18% stake in Belovo Paper Mill indirectly, through an agreement for join control over the company with Luxembourg's Padilux.

Belovo Paper Mill shares last traded on the Bulgarian Stock Exchange at a price of 2.0 levs.

(1 euro = 1.95583 levs)