Croatia's Villa Dubrovnik management supports Erste's buyout bid

The Villa Dubrovnik's management team backs the intention of the bidder to continue the process of improvement of the company's existing capacities and development of new ones, it said in a filing to the Zagreb bourse on Monday.

The management sees as appropriate the price of 417.12 kuna ($63.1/55.5 euro) per share offered by the bidder.

The company's equity capital of 83 million kuna is divided into 830,019 shares with a face value of 100 kuna each.

Croatia's financial regulator Hanfa approved the buyout bid on October 29. Its decision was published in the State Gazette on November 10.

Erste d.o.o. said in August that eight pension funds which it represents have acquired 89.60% interest in Villa Dubrovnik and are obliged to make a tender offer to minority shareholders.

Shares of Villa Dubrovnik were listed on the Zagreb bourse's regular market in June.

The company's shares last traded on November 12, ending at 350 kuna, down 9.79% compared to the previous closing price.

(1 euro= 7.511 kuna)