Bulgaria's Zahar Invest raises stake in Zaharni Zavodi

In the period between February 2 and 29, a total of 47 investors accepted Zahar Invest's tender offer of 6.30 levs ($3.49/3.22 euro) per share, Zaharni Zavodi said in a bourse filing.

In January, Zahar Invest, which at the time held a 94.071% stake in Zaharni Zavodi, submitted a tender offer to acquire the remaining 5.929%, represented by 658,848 shares. The Financial Supervision Commission (FSC) approved the offer's publication last month.

Zahar Invest has the right to purchase the remaining 347,205 shares at 6.30 levs each within three months, with or without the consent of the target company's shareholders.

At the same time, Zaharni Zavodi's investors who did not accept the tender offer have the right, within three months, to ask the bidder to buy their shares at the same price. Zahar Invest is required to do so within 30 days of receiving such a request.

Last August, the FSC issued a definitive ban on filing a revised offer for the takeover of Zaharni Zavodi by Zahar Invest, saying the tender does not meet the requirements of the relevant legislation and harms the interests of the target company's minority shareholders. Earlier, Zahar Invest had raised to 6.29 levs per share from 5.15 levs per share its proposal to acquire the 5.929% stake in the sugar and ethanol producer.

Shares in Zaharni Zavodi last traded on February 23 when they closed at 6.20 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.

(1 euro = 1.95583 levs)