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Bulgaria's Rodna Zemya Holding board endorses Nevena's buyout bid

Author Mario Tanev
Bulgaria's Rodna Zemya Holding board endorses Nevena's buyout bid wrangler/

SOFIA (Bulgaria), January 24 (SeeNews) - The board of directors of Bulgarian diversified group Rodna Zemya Holding [BUL:6R2] said on Friday that the 2.1 levs ($1.19/1.07 euro) per share price offered by local company Nevena in a buyout bid for the remaining 53.56% stake it does not currently own is a fair price to minority shareholders.

The buyout offer is also in line with legal requirements, Rodna Zemya Holding's board of directors said in a statement.

Nevena is seeking to acquire 29,996,664 shares through its bid. The 2.1 levs offered by Nevena value Rodna Zemya Holding at 117.6 million levs, equal to its market capitalisation.

The discounted cash flow model values Rodna Zemya Holding shares at 2.14 levs apiece, while its net asset value corresponds to a price of 1.89 levs per share.

Nevena controlled 33.27% interest in Rodna Zemya Holding at the end of September, according to the group's most recent interim financial statement, and subsequently increased its stake in the company to 46.44% on December 30.

According to commercial register data, Nevena is a company fully owned by private individual Boril Balev.

Last year, Rodna Zemya Holding raised 36 million levs through a capital increase and agreed several large acquisitions - of DIY-chain operator HIT Hypermarket and meat products maker Koopdoverie Lesidren.

(1 euro = 1.95583 levs)