Biofarm intended to buy at most 109.5 million, or 10%, of its shares at 0.305 lei (EUR0.07) per share in the offer launched on 26 August that ended Monday. Investors, however, placed orders to sell a total 969 million shares, almost nine times more than Biofarm planned.
“The largest order, of 566.3 million shares, matches SIF Muntenia’s (SIF4.RO) stake, and another order, of 151.3 million shares, corresponds to SIF Moldova’s (SIF2.RO) participation,” said Marcel Murgogi, operations manager at brokerage house Estinvest.
Other order, of 233.1 million shares, is similar to the stake held by SIF Banat-Crisana (SIF1.RO).
Before the start of the offer, SIF Muntenia held 51.7% of Biofarm’s shares, SIF Banat-Crisana had a 21.3% stake, while SIF Moldova’s participation reached 13.8%. Free-float was at around 13% of the total number of shares.
“Each investor will sell around 11% of the stake it planned to sell,” said Nicu Grigoras, trading director at Intercapital Invest brokerage firm.
Therefore, SIF Muntenia will only sell 62.3 million of the shares it holds in Biofarm (5.6% of the company’s stock) for RON19 million, reducing its interest to 45%.
SIF Banat-Crisana will get RON7.8 million for 25.6% million shares (2.3% of Biofarm’s shares), while its participation will decrease to 19%.
SIF Moldova will cash in around RON5 million for 16.6 million shares, cutting its stake in the pharmaceutical producer to 12.3%.
When the buyback offer was launched, some observers said the SIFs were preparing a full takeover of Biofarm, and the company’s delisting, but instead the SIFs used the offer to cut their stakes.
On the regular market Monday, Biofarm closed at 0.283 per share. (EUR1=RON4.4209)