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Spain, Dia Council supports Fridman’s bid

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The board of directors of Dia has shown a favourable and unanimous opinion to the Public Offer of Acquisition (OPA) presented by LetterOne, a company controlled by the Russian investor Mikhail Fridman, with more than 29% of the capital of the supermarket chain.

Specifically, the highest governance body of the company has informed the National Securities Market Commission (CNMV) of its decision one day before the deadline to offer its opinion on the OPA.

In this way, the board of directors has given this favourable opinion given the current circumstances of the company and “there is no other alternative” and in light of the “high risks” that would entail for the company, shareholders, creditors, employees, franchisees and suppliers that the Fridman offer did not prosper.

Thus, they understand, after hearing the opinions expressed by Bank of America Merrill Lynch International Limited and Rothschild & Co., that the OPA of the Russian millionaire is the “best existing alternative” for all the referred interest groups.

However, it considers that the bid price of 0.67 euros is not considered to be an equitable price, while underlining that LetterOne has not yet indicated that it has reached “any agreement” with the creditor banks to avoid defaulting on maturity on May 31, 2019 of the debt.

For its part, Rothschild & Co. highlights in its report that the offer may represent an “opportunity” for shareholders seeking “immediate liquidity” for their investment or who are not willing to assume the risks that could result in the total loss of your investment.

Source: libremercado

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