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Bulgaria's Nevena launches buyout bid for Rodna Zemya Holding

Author Mario Tanev
Bulgaria's Nevena launches buyout bid for Rodna Zemya Holding wrangler/Shutterstock.com

SOFIA (Bulgaria), January 21 (SeeNews) - Bulgarian diversified group Rodna Zemya Holding [BUL:6R2] said that its biggest shareholder - local company Nevena, has launched a buyout bid priced at 2.1 levs ($1.19/1.07 euro) per share for the remaining 53.56% interest in the company it does not own directly.

Nevena is seeking to acquire 29,996,664 shares through its bid, Rodna Zemya Holding said in a statement on Monday.

The offer has not yet been approved by the Financial Supervision Commission.

The discounted cash flow model values Rodna Zemya Holding shares at 2.14 levs apiece, while its net asset value corresponds to a price of 1.89 levs per share.

The 2.1 levs offered by Nevena value Rodna Zemya Holding at 117.6 million levs, equal to its market capitalisation at the start of Tuesday's trading session on the Bulgarian Stock Exchange.

Nevena controlled 33.27% interest in Rodna Zemya Holding at the end of September, according to the group's most recent interim financial statement, and subsequently increased its stake in the company to 46.44% on December 30.

According to commercial register data, Nevena is a company fully owned by private individual Boril Balev.

Last year, Rodna Zemya Holding raised 36 million levs ($20.6 million/18.4 million euro) through a capital increase and agreed several large acquisitions - of DIY-chain operator HIT Hypermarket and meat products maker Koopdoverie Lesidren.

(1 euro = 1.95583 levs)

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