La DIA crisis continues its course after adding months and months of decline in the stock markets. So strong was the stock drop of the supermarket chain that even left the IBEX 35, causing distrust of investors.
El business model implanted has been leading the company to total failure, with a loss of almost 90% of its value in Stock Exchange in recent months. In addition, the lack of capital expansion has placed it at a difficult time for its survival.
So now, the Russian tycoon Mikhail friedman has decided to launch a Public Offer of Acquisition (OPA) for 70% of DAY, which he still does not control. Yes, he would if his idea came to fruition, something that will be seen soon. At the moment, it is known that it offers shareholders 0,67 euros for each share. This is yet another chapter of the DIA crisis in their fight not to go under.
Friedman's conditions
According to the newspaper El Mundo, the Russian tycoon who owns the investment company letterone would disburse some 296 million euros in another step for his 'salvation'. Keep in mind that today the company is worth ten times less than in 2017, an interesting fact to understand the difficult situation you are going through. The DIA crisis will now go through the conditions established by the investor.
In the first place, for that OPA follow its course, it must be approved by at least half of the shareholders to whom it is addressed. Then it would be the turn of the capital increase (after executing that Takeover bid).
As for supermarkets, another measure of Friedman is based on the goal of improving profitability and business value. But this proposal would be put into practice once the previous phase of the OPA and capital. It would consist of readjust prices and promotions and implement a better network strategy in their stores. It would also focus on a investment by own brand, as well as improve operations with retailers.
The DIA crisis
About this DIA crisis, Letterone he claims that "he is demonstrably in serious financial difficulties." Therefore, "it requires the implementation of a comprehensive transformation plan." This, "to ensure a viable long-term capital structure."
Waiting for more news, so it is DAY now.
