July 5, 2022

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Colombian Jelinsky launches bid for up to 32.5% of Grupo Argos By Reuters

© Reuters. Archive photo of the Grupo Argos logo in Medellin, Colombia. June 25, 2019 (Reuters) / Luis Jaime Acosta / FILE

BOGOTO (Reuters) – Colombian banker Jaime Gilinsky has launched a public takeover (OPA) offer for Grupo Argos, the third company from a powerful conglomerate he is trying to get into after it secured large stakes in SURA and Nutresa, according to the FSA.

Nugil SAS, which is controlled by Gilinski, requested permission from the FSA on Thursday to launch a takeover bid for Grupo Argos and acquire between 26% and 32.5% of that company.

“The purchase price for each share of the issuer will be four dollars to the USA at eight cents,” according to a communication from the Colombian financial regulator to the exchange.

Trading in Argos shares will be suspended until one day after the notice of the offer is published in a nationally traded newspaper, in accordance with current regulations.

Gilinski, owner of GNB Sudameris and one of the richest businessmen in Colombia, floated three takeover offers of SURA in which, together with the Royal Group of Abu Dhabi, it acquired 34.58% of the shares and consolidated the majority position, overtaking Grupo Argos, which owns 27.79%.

At Nutresa, it has also launched three OPAs in which it has been able to complete 30.8% of the shares, making it the second largest shareholder, outperformed only by SURA.

Grupo Argos is an infrastructure holding company with businesses in cement, roads, airports, conventional and renewable energies through the companies Cementos Argos (CN :), Celsia and Odinsa.

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According to Reuters calculations, the takeover offer, if successful, could reach between $697.6 million and $872 million.

SURA, Nutresa and Grupo Argos are part of the so-called Grupo Empresarial Antioqueño (GEA (ETR :)), a conglomerate in which companies are involved among themselves.

GEA companies declined to participate in Gilinski’s takeover bids for SURA and Nutresa, claiming that the prices offered were below their ratings.

At the end of December 2021, Sora owned 36% of the shares of Grupo Argos and Nutresa 13%. Argos’ outstanding common stock is 657.6 million shares.

Sora is a holding company with a presence in 11 Latin American countries and investments in financial services, industry and corporate ventures, while Nutresa is a leader in processed foods in Latin America, with a direct presence in 14 countries.

(Reporting by Luis Jaime Acosta)