LetterOne, the company of Russian tycoon Mikhail Frigman, has launched a calculated operation to take over most of the supermarket group Day at a price of 0.67 euros per share. The announcement comes months after a serious crisis broke out in the chain that has led to losing almost all of its value in the stock market. In fact, Dia is worth ten times less than what it was worth in 2017.
L1 Retail, the retail division of LetterOne, which now holds 29% of the capital, has launched a voluntary takeover bid (Opa) on all the shares of the food group it does not own. That Opa, as argued by the investor, is not subject to the fixing of the so-called "fair price", which would be 3.73 euros, a value that LetterOne paid in the last twelve months to be done with the last share package (14% ). It would not be because, according to the law of Opas, the company can set another price by making a "voluntary offer", which however is conditioned to at least 35.4% of the capital accepting it.
Specifically, the offer is directed to 70.9% of the company, equivalent to a total of 441,937,819 shares, so that LetterOne would disburse a total of 296.1 million euros. The offered price of 0.67 euros supposes a premium of 56.1% with respect to the one that yesterday closed the titles of Dia, according to has informed the investment firm.
This operation is part of a rescue plan for Dia designed by L1 Retail, which also includes two other parts. The first is the commitment to support a capital increase of 500 million euros to provide a viable long-term capital structure, which is conditioned on the positive result and the subsequent liquidation of the voluntary takeover bid and on which Dia reaches a satisfactory agreement with its creditor bank.
The other part is a comprehensive rescue plan to guarantee the future of Dia, based on six pillars, led and supervised by L1 Retail, which results in the company's comprehensive restructuring in the next five years.