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Bulgarian regulator oks buyout bid for Svilosa, share price jumps 5.88%

Bulgarian regulator oks buyout bid for Svilosa, share price jumps 5.88% hxdbzxy/Shutterstock.com

SOFIA (Bulgaria), December 7 (SeeNews) - Bulgaria's financial regulator said that it has allowed the publication of a buyout offer by A.R.U.S. Holding for a 6.47% stake in cellulose producer Svilosa [BUL:3MZ], priced at 5.5 levs ($3.19/2.81 euro) per share.

Svilosa shares opened Friday's trading session on the Bulgarian Stock Exchange 5.88% higher at 5.4 levs. 

A.R.U.S. Holding's buyout offer is targeting 2,139,070 Svilosa shares, the Financial Supervision Commission said in a statement after BSE closing hours on Thursday.

Last month, the regulator suspended A.R.U.S. Holding's initial bid, priced at 4.7 levs per share.

A.R.U.S. Holding owns a 80.67% stake in Svilosa directly. On October 10, A.R.U.S. Holding signed an agreement with Luxembourg-based KBD SA for joint management of Svilosa, in accordane to which A.R.U.S. Holding's direct and indirect stake in the Bulgarian cellolose producer increased to 93.26%.

After A.R.U.S. Holding carries out the buyout bid, it intends to delist Svilosa from the Bulgarian Stock Exchange.

According to data from the commercial register, private individual Krasimir Dachev holds a 90% stake in A.R.U.S. Holding, while another private individual - Albena Badeva, owns the remaining 10%.

Svilosa, through its unit Svilocell, is the largest producer of bleached kraft pulp in Bulgaria.

(1 euro = 1.95583 levs)

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