Dispute Resolved: Gilinski Family Retains Control of Grupo Nutresa
After 18 months of disputes between the Gilinski family and the group policies of Sura, Nutresa, and Argos, an understanding agreement has been reached. Valle del Cauca investors will retain control of a controlling interest in the food producer Paisa, with no less than 87 percent of the company’s shares.
You can also read: After agreement, Gilinski stays with Nutresa and leaves Grupo Sura
The End of the Antioquia Business Group (GEA)
After eight takeover bids in the stock market and a year and a half of confrontation between the two investor groups, the Gilinskis have ended the castling that formed the Antioquia Business Group (GEA).
The terms of the agreement state that JGDB, Nugil, and IHC Capital Holding, companies controlled by the Gilinskis, will no longer be shareholders of Grupo Sura. Instead, they will become the controlling shareholders of Grupo Nutresa, while Grupo Nutresa will no longer be a shareholder of Grupo Argos and Grupo Sura. Grupo Argos will also cease to be a shareholder of Grupo Nutresa.
“The arrival of a new global investor to Grupo Nutresa represents an opportunity to create value for all shareholders while preserving the organization’s principles, maintaining jobs and investments in the country,” said Jorge Mario Velásquez, president of Grupo Argos.
Today, as the shares of Nutresa, Argos, and Sura are relisted on the Colombian Stock Exchange (BVC) after the memorandum of understanding, the parties have announced the step-by-step process of the agreement.
In the first hour of trading, the most valued titles are Grupo Sura with an 18 percent growth, Grupo Argos with a 12 percent growth, and its preference shares with an 11 percent growth.
Also read: Falls in industry and commerce in April exceeded 6%
Grupo Nutresa is a significant player in the food industry market.
What Will the Process Entail?
The agreement will involve several operations that require approval from the authorities. The first step will be to convene a Nutresa shareholders meeting to authorize the transaction.
Here is the step-by-step process:
Mirror Spin-Off of Grupo Nutresa
The transaction includes a mirror spin-off of Grupo Nutresa, which will result in two companies listed on the Colombian Stock Exchange. One company will continue to own the operating business (food), while the new company will own the investments that Grupo Nutresa currently has in Grupo Argos and Grupo Sura (portfolio).
After the spin-off, each shareholder of Grupo Nutresa will keep one share of the food company and receive one share of the new portfolio company.
Public Exchange Offer for up to 23% of Grupo Nutresa (food)
Following the spin-off, Grupo Argos and Grupo Sura will make a public exchange offer for a stake of up to 23.1% of Grupo Nutresa (food).
Shareholders of Grupo Nutresa (food) will have three options:
a) Sell their shares for cash at a value of $12 per share.
b) Exchange their Grupo Nutresa (food) shares for shares of Grupo Sura and the new portfolio company.
c) Remain as shareholders in Grupo Nutresa (food).
Grupo Argos will participate proportionally with 22 percent of