Investment group Letterone said it plans to make a 300 million euros takeover bid for Spanish supermarket chain DIA, valuing the group at more than 400 million euros.
Letterone, controlled by Russian tycoon Mikhail Fridman, will offer 0.67 euros per share for the 70% that it doesn't already own, a premium around of 56% over DIA's closing share price of 0.43 euros.
The retailer has lost market share over the last few years as the end of the economic slump in Spain saw customers turning away from the discount supermarket chain.
DIA is in the middle of the restructuring process after losing 90% of its market value in the last twelve months.
Letterone plans to launch a 500 million euros capital increase to refloat the retailer after the transaction, provided the bid is successful and the company's financial debt is restructured.
The deal is subject to approval by Spanish regulators. (www.esmmagazine.com)