October 14 (SeeNews) - Bulgaria’s Financial Supervision Commission (FSC) said it has suspended the offer of local confectionery maker Pobeda to acquire 854,260 shares in its majority-owned subsidiary Prime Property BG REIT [BUL:PPBG] that it does not own yet.
As a result of inaccurate data, a recalculation of the fair price will be needed, the FSC said in its decision published on Thursday.
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At the end of September, Pobeda proposed to minority shareholders to pay 0.63 levs ($0.31/0.32 euro) per share for the remaining 2.39% stake in Prime Property it does not already own.
The FSC established that the offer and the accompanying documents contain deficiencies and discrepancies that need to be addressed. Notably, the regulator pointed out that some of the data in the offer differ from the data in financial reports. The correction must lead to recalculation of the share price and the fair price, the FSC said.
The commission added that the proposal must be defined as a “buyout offer” instead of a “tender offer”, which requires a clarification in the documents that minority shareholders do not have an option to reject the offer and their shares will be transferred to the offeror automatically.
Furthermore, FSC requested a new bank document to certify the availability of funds for the offer and made specific requirements related to the banking aspects of the deal.
Pobeda reached ownership of 97.6% in Prime Property in July after buying 632,246 shares from minority owners in a previous offer. Pobeda paid 0.61 levs per share, revising the originally proposed price of 0.57 levs after the FSC temporarily halted the buyout.
(1 euro = 1.95583 levs)