Argos stock drops 6.41% during Gilinski Group’s takeover bid

This Tuesday, July 5, during the ninth day of accepting the General Offer of Admission (OPA) from Grupo Jelinsky for him Argus GroupAnd the The company’s stock fell 6.41% to 14,600 pesos per share. According to experts, this behavior may be related to the outcome of the eighth day of the takeover offer, in which only 127 partners agreed to sell 1.58 million shares.

Until now, Jaime Jelinsky Only 3.54 million, which represents 0.54% of the company’s contribution, accumulate away from 32.5% which he intends to offer for $922.69 million (3.87 billion pesos).

so it is, Grupo Sura’s board of directors decided by majority that it would not sell its stake in the infrastructure holding company through the takeover offer made by the banker on May 19.. This is after reviewing the strategy and management of human, natural, financial and social capital and the capital of corporate management. “Grupo Sura considers that the proposed transaction is not worthy of abandoning its medium and long-term strategy to achieve sustainable profitability and contribute to the harmonious development of society,” the company said in a statement.

Jaime Gilinsky’s battle for control of Grupo Argos seems to have failed

Last May 19, the banker Jaime Jelinsky launched a takeover bid 32.5% of contributing to Argus Group to replace $922.69 million. However, the main partners in the holding, Surah and Nutrisarejected the possibility of selling their stake 35.32% and 12.41% respectively.

It should be remembered that the banker owns 30.81% of Nutresa and 37.86% of Sura, but the two boards of directors have implemented different strategies for retaining their stakes in Argos.

Thus, within two weeks, Jorge Mario Velasquez, Argos President, resigned from the GEA corporate boards; Alejandro Pedriata, Vice President of Corporate Finance at the same company; Gonzalo Perez, President of Sora; Carlos Ignacio Gallego, President of Nutresa, and Juana Francisco Lano, President of Suramericana.

With this, each issuer sought more flexibility and authority to respond to OPA, because of this Avoid getting caught in a conflict of interest about the company where there is an intent to buy. The foregoing led to Gabriel Gilinsky’s resignation from the Nutresa Board of Directors for the same purpose.

Later, at an extraordinary meeting of Sura Group shareholders, Gilinski was disqualified from the takeover offer decision, along with José Luis Suárez, an independent member of the Sura Group. Therefore, it was left in the hand Angela Tavor (representative of the Gilinsky group), Sebastian Urjuela, Luis Santiago Quartas, Luis Javier Zuluaga and Pablo Londono (All of them have been nominated by GEA as members of the Board of Directors), the decision they must make to dispose of the Sura Group’s participation in the takeover offer that Gilinski Group has implemented since last June 21 and which will run through July 6.

In this sense, he concludes that the offer made by Argos is inappropriate.”In the current conditions of economic, international and domestic uncertainty“.

Likewise, most of the board members who refused to carry out the deal questioned the mechanisms proposed by the bidder, such as unsolicited and broken takeover bids and bidding.

Similarly, an extraordinary meeting was held last Friday to assess the conflict of interest of the Board of Directors to decide on the takeover offer, but the quorum was not reached.

Read on: