Mergers become trendy on the Rasdaq market

Initiated on BVB (Bucharest Stock Exchange) by the recent merger between Panegrano and Mopariv, the takeover trend was also adopted by the Rasdaq secondary market.

Ialomita-based bread and bakery producer Prodpan on Wednesday launched a buying offer for 15.5 percent of the Slobozia-based Morarit-Panificatie company shares. In case this operation is successful, Prodpan will have a privileged position within the shareholding structure, holding a 49.894 percent stake. Within Morarit-Panificatie shareholding structure, only the employees’ association holds a significant position, owning 24.275 percent of the shares, the rest of the share capital being divided among small investors (41.331 percent).

“Prodpan launched the offer only for 15.5 percent of the shares because, for the moment, it does not have the necessary financial resources to acquire all the shares that are currently traded on the market. If it had made an offer for a larger stake, the company would have been subject to CNVM (National Securities Commission) regulations, therefore it should have aimed at acquiring all the shares on the market,” General Investment Group trader Dana Nistreanu told Ziarul Financiar. General Investment Group is the brokerage company that manages the buying offer.

According to Nistreanu, Prodpan intends to entirely take over the Slobozia-based company in the long term. Prodpan has a share capital amounting to 2.37 billion lei, five times lower than the share capital of Morarit-Panificatie, which stands at 11.5 billion lei.

Prodpan share capital is split, in equal proportions (50%-50%), between two natural persons, Radu Vasile and Radu Dan. The offer is being developed on the Rasdaq secondary market between July 11 and August 8.

The price offered by Prodpan for one Morarit-Panificatie share amounts to only 550 lei, 45-fold lower than the face value of the stock, standing at 25.000 per share.

“Morarit-Panificatie shares followed an ascending trend at the end of June, due to rumours announcing the buying offer. However, the price of 550 lei for one share is very small as compared to the current situation of the company. Moreover, we expect continuous appreciation of these shares’ value,” a trader maintained.

Morarit-Panificatie shares’ closing price amounted to 5,300 lei per share at the last trading session, posting a record high of the day.

In case the buying offer is successful, Prodpan intends to modernise Morarit-Panificatie output capacities, by importing production equipment with a view to maintaining competitiveness on the market.