Becoming the largest shareholder of Grupo de Inversiones Suramericana (Grupo Sura), with more than 38 percent of its shares in its pocket, and one of Nutresa’s main partners, with close to 32 percent (which helped them sneak into ‘ on the boards of these two organizations), it was far from being the last play of the Gilinskis, in the dispute in which they have been engaged for a little over 18 months with the directors of the companies of the Grupo Empresarial Antioqueño (GEA), including those of Argos.
(Read also: After an agreement with the Gilinskis, Nutresa’s departure from the GEA would be sealed in 2 months)
That was very clear to most of those who had been following the fight between these two powerful investors for control of the jewels in the GEA crown. What was not in the accounts of many was the surprising agreement with which this dispute ended this week, which had already reached the courts and threatened to last several years.bringing to mind what happened a few decades ago with the fight for Bancolombia, which took 10 years to settle, but which in the end was also made with a pact whose conditions are still in absolute reserve.
Nobody expected what was revealed on Wednesday, commented a consulted stockbroker, but he agreed with others that it is a positive decision for the market, the companies in dispute and their shareholders.
(You may also be interested: After 18 months, this is how the share prices of Sura, Argos and Nutresa changed)
As soon as the Colombian stock market closed its operations at 4 in the afternoon on May 24, directors of the Sura, Nutresa and Argos groups informed the market that an agreement had been reached with Gilinski and his clients: JGDB SAS , Nugil SAS, International Capital Holding LLC and AFLAJ Investment LLC
With that, Gilinski and his partners will gain control of Grupo Nutresa, with at least 87 percent of its shares, but in exchange they will leave their stake in Grupo Sura (38.03 percent).
“An announcement that takes the market by surprise, with more questions than answers, opening the door to massive speculation in the group,” analysts from the firm BTG Pactual Colombia said in a brief statement, who said that this led to the BVC to suspend the trading of the shares of these three organizations for 15 business days.
Even though the filigree of how these operations will be carried out (setting June 15 as the deadline), some of the conditions agreed upon in the meetings that began in March have become known, most of these held in Abu Dhabi and Spain.
still point
With the end of the takeover bids for Sura and Nutresa, in November 2022, the tension and differences between the representatives of the GEA companies and the Gilinskis were transferred to the shareholders’ assemblies and later to the boards of directors of said organizations, to such an extent that they led to criminal lawsuits in which both parties accused each other of acting outside of market regulations, manipulation of boards of directors and other contraventions.
“Each meeting was more tense than the previous one, the wear and tear was enormous, while the key issues for the companies and their shareholders were on another plane and the organizations were wearing out a lot,” said a source present at several of those meetings.
The situation became so critical that, in mid-March, the breaking point was reached where the parties agreed to remain on good terms and to find a way out. that would benefit everyone and, although it was not easy to find a consensus on some points, in the end there was white smoke in the face of the claims that each group of investors had.
Thus, the GEA will concentrate the financial and insurance business through Sura, and the infrastructure and energy business, with Argos, while the Gilinski family will focus on the food and consumer business with Nutresa.
end of lawsuits
But what were the claims of the Valle del Cauca investors for Bancolombia?
In one of the final meetings, The possibility that the Gilinskis could stay with the entity was raised as part of the negotiations, but the offer was rejected by the investors, sticking to their initial plan to gain control of Nutres.a, an organization that they have always considered to have enormous potential for global expansion, taking advantage of the capacity and knowledge of the food sector of their partner Tahnoon bin Zayed Al Nahyan, who controls, among others, the international firm Royal Group of Abu Dhabi.
This 53-year-old Arab sheikh is a member of the ruling family in Abu Dhabi, with investments in oil, national security, banking, food and technology, among others.
The refusal to take over the bank is not the only surprise in this deal. While some respondents point out that there is no delivery of resources in these operations, despite the fact that the valuations of the companies are different, others that the Arab investor will have to put money, due to this coming share exchange and that will surely be done through through new takeovers.
But also, as part of the Memorandum of Understanding (MOU), the lawsuits filed by the parties come to an end, while there is still talk about whether a time frame is established so that, in the future, new offers can be presented for the control of said companies, especially in Sura and Argos, since in Nutresa there would be no risk since with its new structure its Owners have no fiduciary obligation to sell.
win-win
Among market analysts there is a consensus that the agreement offers benefits for everyone, the market, investors, companies and, of course, shareholders.
“At first glance, I believe that these transactions (or series of them) should be positive for the Colombian market in a context of low volumes. We also see that the transactions could help simplify the structure of Grupo Argos and Grupo Sura, which could be seen as positive by investors,” said Steffanía Mosquera, an analyst at Credicorp Capital.
Only in these last 18 months, Sura’s share appreciated 95.4 percent, going from 21,200 to 41,420 pesos; Nutresa’s did so at 165.9 percent, since a single company title cost 21,740 pesos on November 10, 2021, it went to 57,800 pesos on Wednesday.
This jump in shares has raised the stock market value of Sura and Nutresa; in the first, more than 10 trillion pesos and in the second, about 16.6 trillion.
“They invested 2,700 million dollars, between takeover bids and purchases of market shares, and only the value of Nutresa on the stock market today is close to 6,000 million dollars, but the fundamental value of that company (according to valuations of some investment banks) is close to 8,000 million dollars, with which, in 18 months, they achieved a profit of close to 5,000 million”, warns a market analyst.
He adds that when the shares return to the BVC arena, in mid-June, it is very likely that they will continue to rise, which will undoubtedly bring greater benefits to shareholders, including pension funds.
CARLOS ARTURO GARCÍA M.
On Twitter: @CarlosGarciaM66
artgar@eltiempo.com
