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Serbian tobacco firm DIB backs buyout bid by Sremska Mlekara

Author Radomir Ralev
Serbian tobacco firm DIB backs buyout bid by Sremska Mlekara Cigarette. Author (Wikicommons) License all rights reseved.

BELGRADE (Serbia), April 3 (SeeNews) - Serbian tobacco company Duvanska Industrija Bujanovac (DIB) [BEL:DIBB] said its management supports the buyout bid for a 42.07% stake launched by dairy group Sremska Mlekara. 

The buyout of DIB would not have any negative effect on the group's plans for business plans and job openings, the tobacco company said in a filing with the Belgrade Stock Exchange on Monday. 

In a separate bourse filing on Monday, the trade unions at DIB said they support the buyout plans of Sremska Mlekara, as the bid is in line with the law for the acquisition of joint-stock companies.

Last month, Sremska Mlekara said it launched a buyout bid for the 42.07% stake it does not yet own in DIB. Sremska Mlekara is offering to pay the equivalent of 34.9 euro ($43.1) in Serbian dinars per each of the 14,274 shares it does not own in the tobacco company. 

The takeover offer is valid until April 16, 2018.

The share price of DIB currently stands at 11,453 dinars ($119.5/96.9 euro), according to data from the Belgrade Stock Exchange. There were no deals involving the shares of the company in the last three years.

(1 euro = 118.200 dinars)