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Unilever to buy 75% of Romanian food chain Good People

Unilever to buy 75% of Romanian food chain Good People

BUCHAREST (Romania), July 4 (SeeNews) - Romanian food chain Good People [BSE:FRU21] said on Thursday that transnational consumer goods group Unilever has signed a contract to buy a 75% stake in the company.

The deal needs to be approved by Romania's competition authority in order to take effect, Good People, operating under the brand name FruFru, said in a statement.

Mihai Simiuc, who founded the company in 2005, will remain shareholder in Good People, and will own a 25% stake if the deal is finalised.

The transaction price will be set within 10 business days from the end of the month preceding the month in which all prior conditions in the contract have been met. However, considering the requirement to determine the final price after the signing the contract, there is no certainty that this contract will be implemented, the company said.

Good People raised 4.55 million lei ($1.08 million/960,807 euro) in March 2016 through the sale of five-year bonds on the Bucharest Stock Exchange, BVB.

Shares of the company traded 0.24% lower at 103 lei on the AeRO market of the BVB as at 1222 CET on Thursday.

Unilever is a British-Dutch transnational consumer goods company co-headquartered in London, United Kingdom, and Rotterdam, Netherlands. Its products include food and beverages, cleaning agents, beauty products, and personal care products.

In March, Unilever said it has started to reduce its presence in kiosks in Romania as part of commitments it took earlier in order to obtain clearance to buy local ice cream producer Betty Ice. The Romanian competition authority conditionally approved the takeover in November 2018. Unilever and Betty Ice signed the sale and purchase agreement at the end of January 2018.

(1 euro=4.6582 lei)