SOFIA (Bulgaria), October 14 (SeeNews) – The board of Bulgarian veterinary drug maker Biovet said on Friday that the joint buyout bid of majority owner Huvepharma and minority shareholder Opportunity 2009 is a fair offer, which won't affect negatively the company and its employes once it is accepted.
"In view of the company’s forecast economic parameters and the expectations for its development, we think that the offered price is fair," Biovet’s board said in a statement.
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Earlier this week, Huvepharma and Opportunity 2009 raised their buyout bid for the remaining 677,998 shares which they do not already own to 15.03 levs per share ($8.5/7.7 euro) from 14.4 levs offered previously.
Huvepharma owns 86.32% of Biovet's shares, whereas Opportunity 2009 has a 3.68% stake. The offer is for the remaining 10% of the shares.
Huvepharma and Opportunity 2009 signed an agreement for the joint management of Biovet on July 18, which does not foresee changes to Biovet's core activity and financial strategy for the current and next fiscal year, the board said. The distribution of dividend is not part of the management’s plan for the next financial years and any profit will be retained, the board added.
Considering all the above, the Biovet board believes that accepting the buyout offer won't negatively affect the interests of Biovet or its employees, it added.
Biovet has production plants in the towns of Peshtera, Botevgrad, and Razgrad. The company exports about 90% of its output.
Huvepharma focuses on the production and distribution of animal pharmaceutical products and animal feeds, as well as active pharmaceutical ingredients for use in animal and human pharmaceuticals.
Biovet shares closed at 15.989 on Thursday on the Bulgarian Stock Exchange, up 3.47%.