Colombian Pension Fund Proteccion Is Key in Billionaire's Bid for Food Firm - Bloomberg
Billionaire Jaime Gilinski’s takeover bid for a majority stake in Colombian food producer Nutresa SA has placed the spotlight on a pension fund manager that may hold the key to whether the transaction goes through.
Proteccion SA, which manages retirement funds with a 5.2% stake in the Medellin-based food producer, is closely associated with the two largest holders of Nutresa -- Grupo de Inversiones Suramericana SA, or Sura, and Grupo Argos SA, which combined hold another 45.3%. If they don’t want to sell, that means Proteccion could tip the scales one way or the other should minority investors decide to tender at the 38% premium on offer.
Nutresa, Proteccion, Sura and Argos form part of an exclusive business group that hails from Medellin called the Grupo Empresarial Antioqueño, or GEA. The coalition runs large swathes of Colombia’s economy and publicly traded conglomerates, and since the 1970s and 1980s has been able to fend off hostile acquisition bids.
But now Gilinski, who has made the bulk of his estimated $4.4 billion fortune in banking and private-equity investments, is looking to upset that dynamic. He’s partnered with Abu Dhabi’s Royal Group to offer to buy a minimum of 50.1% of shares and a maximum of 62.6%, according to people familiar with the plans. The offer, at $7.71 per share, represents a 38% premium from where the stock had been trading before the announcement.
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