December 5 (SeeNews) - Bulgaria’s Financial Supervision Commission decided to issue a temporary ban on local DNS Invest’s offer to acquire a stake of 29.8% in Rodina Capital [BUL:RDNA], requiring a price recalculation, the regulator said.
When justifying the proposed price per share, DNS pointed out that it used the Free Cash Flow to the Firm (FCFF) method, the commission said in a statement last week. The company, however, actually used a different method - Free Cash Flow to Equity (FCFE).
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The regulator thus requested a recalculation of the price as well as the correction of a number of data inaccuracies identified in the paperwork.
DNS aims to buy 27,944 shares in Rodina Capital from the other shareholders.
According to its latest financial report, the main activity of Rodina Capital is renting out premises after its textile manufacture operations were terminated in 2001.
Rodina said in November that it will seek authorisation from its shareholders to increase its capital to up to 50 million levs ($27 million/25.57 million euro) over a period of five years.
(1 euro = 1.95583 levs)