Croatian confectioner Kras has said it considers the buyout price put forward by local meat processor Braca Pivac as too low.
It was revealed last month Braca Pivac, which already owns 30.7% of the confectionery firm, had launched a bid to buy the rest of the shares in the business and that HANFA, Croatia’s financial regulator, had approved the bid.
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But now, in a statement to the Zagreb Stock Exchange (ZSE), Kras has said the price Braca Pivac had offered does not meet its own valuation of the business.
Braca Pivac has tabled a bid worth HRK430 (US$64.05) per Kras share. The management of Kras believes Braca Pivac has not taken into account the fact that in certain instances during the three-month period preceding the buyout launch date, the confectioner was trading at HRK505. Moreover, in the period after Braca Pivac announced its takeover plans, the share price soared to HRK1,090, Kras told the ZSE.
Braca Pivac has said the price it is offering is above the average share price of HRK427 in the three-month period prior to 9 September when it became legally obliged to launch the bid.
Local trading group Kras-ESOP owns 18.45% of Kras while the remaining shares are in the hands of smaller investors.
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By GlobalDataZagreb-based Kras, set up in 1911, has factories in the Croatian capital, in Osijek, another city in the country, and in Prijedor in Bosnia and Herzegovina. The company produces a range of chocolate, sugar confectionery and biscuit products.
