Sopharma increases stake in Momina Krepost to 80.09%; tender offer should be extended within 14 days (NEUTRAL)

Sopharma has raised its stake in Momina Krepost to 80.09% from 52.99% previously through the purchase of 458 250 shares at a price of BGN 3.01/share through a deal settled on 10 March. The sellers of the stake are Industrial Holding Doverie (5.07%), a subsidiary of Doverie United Holding, Hydroizomat (10.14%) and most likely Telso (owned 10.37% as end-2014) and other related to Sopharma companies. According to regulations, Sopharma will need to extend a tender offer to the minority shareholders within 14 days from the acquisition date or to sell such a number of shares so that its stake falls below 2/3. Please recall, that in 2013, Sopharma exceeded 50% stake and extended a tender offer to the minority shareholders, which was banned by the Financial Supervision Commission. The tender offer was extended at BGN 3 per share. Currently, Sopharma does not have right to exercise voting power at the General Meetings of Momina Krepost as it has not published a tender offer. Momina Krepost is a Bulgarian company specializing in the production of transfusion and infusion sets; syringes, needles; tubes, catheters and drains and other plastic disposable materials.