DIA Directors Back LetterOne's Tender Offer
Spanish retailer DIA has announced that its board of directors has unanimously supported the tender offer presented by its main shareholder, LetterOne (L1).
In March of this year, LetterOne investment fund, which owns more than 29% shares in the company, offered to consider injecting capital into the retail group if other shareholders accepted its buyout proposal.
The Best Option
The board mentioned in its report to the Spanish stock market authority, CNMV, that it is the best option for the group’s shareholders, creditors, employees, franchisees, and suppliers.
The board had struck a deal with creditors to raise capital by €600 million in exchange for a much-needed liquidity injection in December 2018. However, the plan was overturned by the company's shareholders.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.