December 19 (SeeNews) - Bulgarian hydraulic equipment manufacturer M+S Hydraulic [BUL:MSH] said on Monday that it has received a binding confirmation of its offer to acquire 90% of Italy's Oleotecno Hydraulic Components Srl - its biggest distribitor, for 12.15 million euro ($12.9 million).
The parties will now conduct negotiations and consultations to specify the details of the transaction, M+S Hydraulic said in a bourse filing.
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The planned investment is expected to bolster the position of the Bulgarian company as a producer of hydraulic motors, hydrostatic servo controls, brakes, valves and accessories for them. The potential deal should increase M+S Hydraulic's share of the global market.
The offered price is based on a market valuation prepared by PricewaterhouseCoopers Business Services Srl, Italy. If an agreement is reached, M+S Hydraulic plans to pay the sum in three instalments within two years from the date of the signing of the contract for the acquisition, the company said.
Shares in M+S Hydraulic closed flat at 9.05 levs on Monday on the Bulgarian Stock Exchange.
($ = 0.94335 euro)