DIA shareholder Mikhail Fridman sounding out other shareholders for possible takover bid - report (translated)
26 AUG 2018
Russian businessman Mikhail Fridman, Distribuidora Internacional de Alimentacion (Grupo DIA)’s main shareholder with 25% of the capital through vehicle Letter One, has initiated contact with other shareholders to explore the launching of a takeover bid for the company, Expansion reported.
Its main partner in this venture is Goldman Sachs which, according to financial sources, acts on behalf of Fridman himself. The US bank currently holds an indirect stake of 14.534% in the group, the majority of which would be held by the Russian businessman, the item said.
The same sources assure that these derivatives will expire in October and that the shares could already pass directly into Fridman's hands. This would make it easier for him to reach a 30% stake in Dia - complemented by small purchases in the market (the free float is 30.80%) - and, therefore, he would be obliged to launch a takeover bid for 100% of the company. Goldman Sachs sources did not want to comment on the matter, the Spanish-language paper highlighted.
In the event that a takeover bid is finally submitted, a voluntary takeover bid would have a good chance of succeeding, given Fridman’s position on the board - where he placed two directors this year, Karl-Heinz Holland, former CEO of Lidl, and Stephan Du-Charme, CEO of Russian X5 group) – and his strength as a shareholder, Expansion reported.
Financial sources claim that contact with Societe Generale, which holds a 4.889% stake in the group, could already have taken place. Other shareholders include Edinburgh-based investment fund Baillie Gifford, which has a 10.48% stake, Canadian fund Black Creek Investment Management (4.9%) and Norwegian bank Norges Bank (4.6%), the item said.
Grupo DIA's market value is EUR 1.327bn. So far this year, however, the company has lost 50.43% of its value.The group's profits fell by 37% in 2017 and 88% in 1H18. In Spain, it has lost one point of market share, from 8.6% to 7.6% in one year, Expansion added.