April 8 (SeeNews) - Croatia's financial regulator, Hanfa, said on Friday it has rejected an application for a buyout bid for food producer and retailer PIK Rijeka submitted by its majority shareholder PIK-ESOP as the price that it offered was 2.8 times lower than the law-prescribed minimum.
The minimum price that PIK ESOP was supposed to offer is 134.99 kuna ($19.4/17.9 euro) per share, instead of 49 kuna set in its buyout application, Hanfa said in a statement.
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On March 14, PIK ESOP said that the buyout price of 134.99 kuna per share that Hanfa has set for for dairy has not been correctly calculated, adding that it would not amend its offer and will request the termination of the procedure.
If PIK ESOP fails to make a buyout bid, they could file a complaint in court, Hanfa added.
PIK's equity capital totals 81.7 million kuna, distributed in 202,080 shares without a set nominal value, according to the company's website.
PIK ESOP holds 58,300 shares in PIK, equal to a 28.85% stake, according to data of the central depository agency.
In April 2021, Hanfa decided that individuals Gino Pastorcic and Igor Borovac and company PIK-ESOP have to make a buyout bid for PIK-ESOP as Borovac and Pastorcic in 2019 indirectly obtained 40.23% of PIK ESOP, which is the largest shareholder in PIK.
Pastorcic is director of PIK, and Borovac is its supervisory board member.
(1 euro=7.554 Croatian kuna)