January 18, 2021

The CNMV admits Fridman's takeover of Dia | Economy

Dia proposes a capital increase of 600 million | Economy

The National Securities Market Commission (CNMV) has accepted the request for a voluntary tender submitted by the Letterone fund on the supermarket chain Dia, of which it already owns 29%, as announced by the regulator through a relevant event. This is another milestone in the process, which the fund expected for this week or early next, as announced to El Pais on Wednesday Stephan DuCharme, the head of L1 Retail, the branch of the fund dedicated to retail, what is the What presented the offer on February 5.

According to the relevant event, the CNMV understands that "the prospectus [aún no publicado] and the other documents presented, after the complementary documentation and the modifications registered "on the 4th and today," are in accordance with the provisions "in the Opas regulations, specifying below that the admission to process of the OPA request" it does not suppose some pronouncement on the resolution relative to the authorization of the offer ", that will have to take place or not in his moment.

Although Letterone announced its offer to take control of Dia on February 5, it was not until the 21st when formally presented the request for authorization to the CNMV. Since then, the stock exchange supervisor has been reviewing the documentation submitted by the fund domiciled in Luxembourg and owned by the Russian tycoon Mikhail Fridman. DuCharme said this week in a meeting with EL PAÍS, "impressed" by the professionalism and "hard work" of the CNMV when examining its offer.

This amounts to 0.67 euros per share, well below the price that would have to be disbursed by virtue of purchases of shares made in the previous 12 months, due to the voluntary nature. It is conditioned to obtain at least half of the 70% of the shares that it does not control, so that it is done with the total control of the chain. Only then, already with the control of the council, would present a capital increase for 500 million conditional on an agreement with creditor banks to delay debt maturities.

Letterone faces the current board of the company, led by Borja de la Cierva, which he considers responsible for the problems the company is going through, which closed the year with losses of 352 million euros and with a negative patrimony of 166 million, reason why it is immersed in cause of dissolution. The current council has also proposed a capital increase of 600 million, to balance the heritage. The shareholders must opt ​​for one or the other on March 20, at the shareholders' meeting.


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