May 26 (SeeNews) - Bulgaria's Prime Property BG REIT [BUL:PPBG] said that its majority owner, local confectionery producer Pobeda, has tabled a buyout offer of 0.61 levs per share ($0.33/0.31 euro) to minority shareholders of the property investment trust, up from the original price of 0.57 levs per share proposed in March.
The price was amended according to a decision of the Financial Supervision Commission (FSC), which suspended Pobeda's tender offer in April due to inconsistencies in determining the fair price per share, Prime Property BG REIT said in a bourse filing earlier this week.
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Pobeda will finance the transaction worth some 907,500 levs through its own available capital.
Minority shareholders have been given 28 days from the date of publication of the offer on May 23 to accept it.
The buyer does not plan a major restructuring or winding down of the target business, which has been loss-making for the past three years. Pobeda will, however, take steps to optimise the REIT's business activities in the context of the worsened geopolitical situation stemming from the war in Ukraine, including by renegotiating contracts with major suppliers so as to reduce operating expenses.
Pobeda submitted a tender offer for the remaining shares in Prime Property to the FSC in March, after increasing its ownership interest to 95.84%.
Shares in Prime Property BG REIT last traded at 0.45 levs apiece on the BaSE market of the Bulgarian Stock Exchange, bourse data showed.
(1 euro = 1.95583 levs)