Bulgaria’s Agria makes takeover offer for biofuel producer Almagest

After successful completion of negotiations, Agria expects to sign an agreement to buy 441,866 shares, representing 100% of Almagest’s capital, Agria said in a bourse filing on Tuesday.

Financial details of the potential deal were not disclosed.

Almagest is focused on storing and processing grain for the production of bioethanol, which is used as a substitute for petrol in internal combustion engines.

The potential investment would provide Agria with access to the market of renewable energy sources and would help the company to position itself in various regions of the country. The deal also offers potential for synergies with Agria’s existing operations. Overall, the investment would result in long-term security and sustainability of the company's business model, improved cash flow and value creation, Agria said.

By 0914 CEST, Agria shares traded flat at 25.40 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)