The Gilinski Group increased its power in the Sura Group with a third member -of seven- in the Board of Directors, thanks to the increase to 37.86% of the shares, from the 34.57% with which the third takeover bid had been closed by the financial holding company of Grupo Empresarial Antioqueño (GEA), although GEA maintains control over decisions.
(Read: Gilinski obtains a third member on the Board of Directors of Grupo Sura).
This increase in shareholding by Gilinski occurred in the ordinary market of the Colombian Stock Exchange.
However, some analysts consulted consider that the move, in the midst of everything, was also beneficial for the GEA, since with the departure of the Board of Carlos Ignacio Gallego, president of Nutresa, due to the entry of the lawyer Ángela María Tafur Domínguez, the business group isolates Nutresa from the decisions of the Grupo Sura Board, that is, in some way, the Gilinski Group will no longer be able to rule in Sura, through the food group, said the financial analyst, Andrés Moreno Jaramillo.
He comments that, in terms of corporate governance, the other members could act with more freedom in key decisions.
An analysis by the firm Casa de Bolsa says that “sAlthough there is a tie at the level of Grupo Sura’s patrimonial board members, there is still no change of control. In any case, despite greater uncertainty regarding the decisions of the new Board of Directors, we assume that as long as the Gilinski Group does not gain control over Grupo Sura, Nutresa or Grupo Argos, none of these companies is going to sell the cross-shareholdings they they have each other. From this point of view, the takeover bid for Grupo Argos will be a new battle for control of GEA”.
The firm says that “taking into account the current holdings over Nutresa and Sura, we estimate that the current “Critical Path of Control” over the GEA passes through the control of Grupo Argos.”
Likewise, Casa de Bolsa analyzes that taking into account the maximum percentage to be purchased by Grupo Gilinski during the first takeover bid by Grupo Argos (32.5%), whose Acceptance period starts June 21“we expect this departure to continue in the coming months through more takeover bids, but also purchase of shares in the secondary market, elections of new Boards of Directors and the media activity of interested parties.”
Other bids are coming
Likewise, Casa de Bolsa states that with the Gilinski Group’s proposal to buy between 26% and 32.5% of the shares with voting rights, the total value to be turned over would be US$914 million, although at a Market Representative Rate of $3,913.
The firm recalls that the market price has been below book value for most of the last five years. The same occurs with the target prices of the main analysts in the country, which are located below the company’s book value. In addition to the fact that the Colombian stock market has remained undervalued in recent years, Grupo Argos has all the complexities that normally result in holding discounts.
Although it controls the infrastructure companies (construction and electricity) that distinguish Grupo Argos (Cementos Argos, Celsia and Odinsa) and constitute the majority of the business and value, the holding company also has investments with significant influence in other sectors, as well as investments in financial instruments of the food sector.
(Also: The objections to the price that Gilinski will pay in the bid for Grupo Argos).
Moreno Jaramillo indicates that the gain in the process of the new Board of Grupo Sura belongs to Gilinski, “although the GEA will always have the majority.”
“Gilinski delayed taking bids to have the three positions in the Sura Board and although the strategy did not work out in Nutresa, that is why he is going to join Grupo Argos and with that he will try to enter Bancolombia,” says the analyst .
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