Announced
Completed
Financials
Sources
Tags
Tender Offer
Public
supermarket chain
Food Retailers and Wholesalers
Majority
Acquisition
discount stores
Private Equity
Spain
Friendly
Single Bidder
Completed
Synopsis
L1 Retail, international investment business and part of LetterOne Group, and owner of 29% of DIA, the Spanish food retailer, announced a voluntary tender offer and comprehensive rescue plan to secure the future of DIA. L1 Retail is committed to supporting a €500m capital increase following the successful completion of its VTO. Offer values DIA at more than €400m ($457m). The L1 Retail rescue plan, ‘MAKE DIA A CHAMPION', consists of three integrated components. First, a VTO for the acquisition of all the shares in DIA that it does not already own at a price of €0.67 ($0.77) per share, a significant premium of 56.1% to the closing price on 4 February 2019. Second, a commitment to support a capital increase of €500m to achieve a viable long-term capital structure, which is conditional upon the completion of the VTO and reaching a satisfactory agreement with DIA's lending banks. Third, a comprehensive six-pillar transformation plan led and overseen by L1 Retail, which is expected to deliver a turnaround of the business over the next five years.
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