Billionaire Gilinski Signs Stock Deal for Colombian Foodmaker

Billionaire banker Jaime Gilinski signed a deal that will give him and Abu Dhabi’s royal family control of Colombia’s largest foodmaker, Grupo Nutresa, bringing to an end a drawn out takeover battle against the country’s most powerful business group.

(Bloomberg) — Billionaire banker Jaime Gilinski signed a deal that will give him and Abu Dhabi’s royal family control of Colombia’s largest foodmaker, Grupo Nutresa, bringing to an end a drawn out takeover battle against the country’s most powerful business group. 

Gilinski and a division of the Royal Group finalized a complex stock-exchange agreement with conglomerates Grupo Sura and Grupo Argos, according to filings posted by Colombia’s financial regulator Friday. The transaction is subject to approval from local authorities.

After 18 months and $2.7 billion of investments, the Gilinski family and partners will emerge with an 87% stake in Nutresa, a maker of cold cuts, chocolates and coffee that operates in 18 countries. The deal effectively breaks up a Medellin-based corporate alliance known as Grupo Empresarial Antioqueño. 

Grupo Argos Chief Executive Officer praised “the arrival of a new global investor to Grupo Nutresa with the aim of growing its operations.”

Under the transaction’s framework, which was released Friday, Sura and Argos will swap their stakes in Nutresa for shares that the foodmaker holds in Sura and Argos. 

Additionally:

  • Argos and Sura will launch an offer to acquire additional shares of Nutresa in order to carry out the stock swap. Investors can choose to get paid $12 per share
  • A publicly listed holding company will be spun off that includes Nutresa’s stakes in Sura and Argos. That holding will later be liquidated to finalize the transaction

 

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