November 27 (SeeNews) - Bulgarian cellulose producer Svilosa [BUL:3MZ] said on Tuesday that its board of directors has found the sweetened buyout bid of A.R.U.S. Holding, priced at 5.5 levs ($3.18/2.81 euro) per share, a fair offer to the company's minority shareholders.
The offer targets a 6.74% stake in Svilosa, or 2,139,070 shares.
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The projections made in order to calculate the offer's price are realistic, Svilosa's board of directors said in a statement.
Svilosa shares last traded on the Bulgarian Stock Exchange on Monday, when they closed at 5.35 levs.
The initial offer, priced at 4.7 levs per share, was temporarily suspended by the financial regulator earlier this month. The Financial Supervision Commission has not yet allowed the updated buyout bid.
A.R.U.S. Holding owns a 80.67% stake in Svilosa directly. On October 10, A.R.U.S. Holding signed an agreement with Luxembourg-based KBD SA for joint management of Svilosa, in accordane to which A.R.U.S. Holding's direct and indirect stake in the Bulgarian cellolose producer increased to 93.26%.
After A.R.U.S. Holding carries out the buyout bid, it intends to delist Svilosa from the Bulgarian Stock Exchange.
According to data from the commercial register, private individual Krasimir Dachev holds a 90% stake in A.R.U.S. Holding, while another private individual - Albena Badeva, owns the remaining 10%.
Svilosa, through its unit Svilocell, is the largest producer of bleached kraft pulp in Bulgaria.
(1 euro = 1.95583 levs)