Report: Dia may approve offer of LetterOne to buy company

MADRID, Feb 7 (PRIME) -- The board of directors of Spanish retailer Dia is ready to approve an offer of LetterOn of Russian tycoon Mikhail Fridman if the investment company guarantees investment of 500 million euros, Spanish daily Expansion reported on Thursday.

“The board of directors thinks that the announcement of the offer shows attractiveness of the company’s business,” and that the plan of transformation of the company’s business suggested by LetterOne is good for Dia, Expansion reported quoting a letter of Dia to the National Securities Market Commission of Spain.

On Tuesday, LetterOne said it planned to increase its stake in the Spanish retailer to 100% from 29% paying 0.67 euros per share, or a total of about 300 million euros, and invest 500 million euros in Dia’s equity to help the retailer transform and regain leadership on the local market.

But the offer does not guarantee the 500 million euro investment, and Dia’s board wants to see the guarantee and set a deadline for investment. The board also wants LetterOne to define the way for the retailer to redeem its debts, including a 215 million euro credit line due on May 31 and 305.7 million euros of bonds before July 19.

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