January 28, 2022

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As expected, Grupo Argos and Nutresa will not sell in a takeover bid for Sura

As expected, Grupo Argos and Nutresa will not sell in a takeover bid for Sura

BOGOTA – As expected by investors and the Gilinsky family, the Board of Directors of Grupo Nutresa has decided to reject the purchase offer made by Grupo de Inversiones Suramericana.

The boards of Grupo Sura and Grupo Argos have already decided not to participate in their bidding The Gilinskis reported on Grupo Nutresa’s actions and for this reason a decision in the same sense was expected by Nutresa regarding the takeover offer of Sura.

Today it became known that the boards of Grupo Nutresa and Grupo Argos decided not to sell their stakes in Gilinski’s takeover offer of Sura.

To reject Gilinski’s offer, the Nutresa Board of Directors took into account the OPA financial analysis prepared by Rothschild & Co.

More: Jelinsky Takeover Attempt: The Battle for the Board of Directors

Similarly, the Board of Directors analyzed aspects related to the potential environmental, social and governance impact of OPA with the support of the Boston Consulting Group.

In addition, based on the legal advice provided by Posse Herrera Ruiz, the Board of Directors has considered the matter Various legal aspects, among them concerns about the bidder obtaining various regulatory licenses.

To make its decision, the Board of Directors also relied on the international legal advice of Simpson Thacher & Bartlett LLP.

It should be borne in mind that Gilinski’s offer includes a price of $8.1 per share of Sura stock, which is a premium of about 50% if the share price is taken as a reference on November 10, 2021 when it launched the takeover offer of Nutresa, which launched a series of valuations in all GEA companies.

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However, if the stock price is taken as a reference at 29% in November, which is the date the takeover offer for Sura was launched, the premium paid by Gilinski is only 27%.

More: EXCLUSIVE: Gilinskis will not extend Grupo Sura . takeover offer

It must be borne in mind that Gilinski has so far only managed to accept his offer for 0.72% of Sura’s shares and his goal is to reach at least 25.34%, otherwise he will not run out of the option to shop.

The Jelinsky family decided not to extend the deadline for receiving admission, That is, next Tuesday, it will be known whether it has reached the expected minimum or if it will not buy a share within the surah.

Grupo Argos, as a shareholder and subject to corporate governance cases, will promote initiatives aimed at maximizing value for Grupo Sura shareholders and bridging the gaps between the companies’ core value and what the stock market reflects today.

  1. Support Grupo Sura in researching and implementing mechanisms to disclose core value to its shareholders, and considering alternatives such as listing on international stock exchanges and/or connecting strategic partners in the company or in the insurance and asset management business.
  2. Increase profitability for shareholders With a proper balance between investing for growth, debt reduction and dividend policy.
  3. Strengthening the mechanisms that allow to continue enhancing the operational efficiencies and digitizing its work that has been achieved in recent years, with the aim of maximizing investment returns for its shareholders.

Grupo Argos considers Bancolombia’s decision to separate the company from the recently announced Nqui, through which it will operate as a 100% digital credit institution, as correct.

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This initiative will allow to accelerate Business plan to disclose value to Bancolombia shareholders and in this way to Grupo Sura shareholders.

More:Nutresa purchase: Gilinski takeover bid enters final stage

In accordance with the business plan announced by the Board of Directors on December 6 and in view of the expected good results for the end of 2021 and the best prospects for the companies, in the dividend project to be decided by the Chairman and Board of Directors Grupo Argos will present a dividend of $500 per share to shareholders for consideration in February, which It corresponds to an increase of more than 30% compared to the decision issued last year.

Grupo Argos will promote through corporate governance cases, as a shareholder Grupo Sura and Grupo Nutresa, Review of these companies’ dividend policies for the benefit of their shareholders.