IHC’s $2.15 billion Nutresa bid boosts shares in Colombian conglomerate GEA’s companies
BOGOTA (Reuters) – Shares in firms which are a part of Colombia’s largest conglomerate GEA rose on Wednesday after Abu Dhabi-based investor Worldwide Holding Firm (IHC) launched a bid to purchase a stake value as much as $2.15 billion in Nutresa.
Grupo Empresarial Antioqueno, or GEA, is a conglomerate of greater than 100 corporations, together with Nutresa, the place many personal important stakes in one another.
IHC’s bid is the newest in a long-running saga of strikes to snap up stakes in GEA firms. Jaime Gilinski, one in all Colombia’s richest businessmen, moved to purchase as much as 62.625% of Nutresa’s shares final yr with help from Abu Dhabi’s Royal Group, which is almost all proprietor of IHC.
IHC has bid to purchase between 25% and 31.25% of Nutresa’s shares at $15 every – 79.3% greater than the closing worth on Tuesday. The IHC bid boosted shares within the conglomerate’s different firms.
Shares in funding holding firm Grupo SURA, the jewel in GEA’s crown which owns the most important stake in Nutresa, rose nearly 7% within the morning session.
Shares in industrial conglomerate Grupo Argos additionally rose round 7%.
“The rises in (shares of) Grupo Argos and Grupo SURA are on account of speculative actions available in the market related to the potential for new takeover bids for these firms,” Camilo Andres Thomas of brokerage Alianza Valores informed Reuters.
Shares in Colombia’s largest financial institution, Bancolombia, one other GEA firm, additionally rose as a lot as 5% throughout the session.
Buying and selling in shares of Nutresa, a processed meals producer, had been suspended following the IHC provide which, if profitable, can be value between $1.72 billion and $2.15 billion.
Grupo Gilinski, supported by Royal Group, whose chairman is Sheikh Tahnoun bin Zayed Al Nahyan, a brother of the de facto ruler of the United Arab Emirates, took management of 31% of Nutresa in two takeover bids final yr.
A 3rd bid was declared void by the Colombian Inventory Alternate in Might this yr.
IHC is a companion of the Gilinski Group, stockbrokers informed Reuters. If the newest bid is profitable, Grupo Gilinski will turn out to be Nutresa’s largest shareholder.
Nutresa operates in 14 nations and has 47 manufacturing vegetation for processed meats, espresso, cookies, candies, pasta and ice cream, along with a line of eating places and ice cream parlors.
Gilinski Group additionally secured a 38% stake in Grupo SURA following a number of bids and transactions final yr.
A bid from Gilinski to purchase as much as 32.5% of Grupo Argos was declared void in July.
($1 = 4,420.38 Colombian pesos)
(Reporting by Luis Jaime Acosta and Oliver Griffin; Writing by Oliver Griffin. Enhancing by Jane Merriman)
