Reconstruction Capital II has announced that its 25.4% stake in publicly quoted Romanian dairy company, Albalact, have been acquired by Lactalis at a price of RON 0.5252 per share (the company’s stake comprised 166,100,478 shares). The acquisition follows a voluntary public offer by Lactalis for Albalact SA previously announced on 5 August 2016.
As a result, Reconstruction Capital II says that it has received a total of RON 87.027m (net of brokerage fees), or €19.572m based on the exchange rate of 4.4464 RON to €1 prevailing as at 20 September 2016. The company says that, at this exchange rate, the it realised a gain of €3.15m on the book value of its holding in Albalact as at 30 June 2016, and a profit of €14.9m on the total cost of its investment.
The company says that, in the first instance, the Directors intend to use the proceeds of the sale to repay the residual balance of the loan notes that have not already been converted, which was €5.8m as at 19 September 2016 (to the extent that such loan notes are not subsequently converted into equity by their holders). Furthermore, the company says that the directors intend to propose that the bulk of the balance be returned to shareholders, having set aside an adequate amount for working capital purposes. Further details are to be announced in due course.
Reconstruction Capital II sells 25.4% stake in Albalact SA : RC2