Companies within the Argos Business Group have carried out buybacks amounting to more than COP 340 billion
21 May 2024The share repurchase plan announced by Grupo Argos and its listed companies amounts to more than COP 1 trillion.
Read moreThe Offer Considerably Underestimates the Fundamental Value of Grupo Nutresa
After a technical analysis, the Board of Directors of Grupo Argos, with the support of a group of independent advisors, including JP Morgan and the consulting firm EY, decided not to accept the offer for the following reasons:
According to the valuation study conducted by JP Morgan, the Board of Directors considered that the economic offer presented of USD 7.71 per Grupo Nutresa share does not reflect a fair price, given that it does not recognize the fundamental value of the food business or its investment portfolio.
The foregoing is based on a rigorous analysis, both for the food business and for each of the businesses in the portfolio, which was based on the following methodologies: discounted free cash flow, cash flow from dividends and multiples of transactions at regional and global level, both in the food sector and in the sectors to which the portfolio companies belong.
The offer also ignores Grupo Nutresa’s leadership in the Colombian market and its presence in the 78 countries where it operates, the resilience of its business in complex economic cycles, the strength of its brands, the capabilities developed that potentialize its future growth and its solid reputation.
Additionally, according to a study provided by EY, it was evidenced that the offer is not clear regarding the continuity of the sustainability model and impact on Grupo Nutresa’s stakeholders. The offer does not provide evidence of the commitment that the bidder exercises or will exercise with respect to environmental, social and corporate governance policies, which may jeopardize the continuity of the positive impact of Grupo Nutresa and its vision regarding the generation of added value to society.
Grupo Argos will accelerate the attraction of international partners that recognize an adequate price for its investments, share its business vision and allow it to reveal value to its shareholders.
As part of its strategy, Grupo Argos has been successfully engaging international partners in its energy, concessions, real estate and cement businesses in recent years. This strategy is based on the premise of accelerating growth and generating more value from partners who share the same vision, values and balanced management towards the various stakeholders.
Grupo Argos recognizes that the market price of its shares does not reflect the fundamental value of its investments. In accordance with the above, the organization makes public the following lines of action that seek to accelerate the transfer of value to the share price:
Grupo Argos reiterates its commitment to all its stakeholders and shareholders so that they are the ones who perceive the value of these transformations.
The share repurchase plan announced by Grupo Argos and its listed companies amounts to more than COP 1 trillion.
Read moreThe rating took into account the fulfillment of the strategic announcements reported by Grupo Argos to the market over the past years, which have resulted in sustained growth of operational margins, greater financial flexibility, and structural solidity, even in a challenging macroeconomic environment.
Read more16% of the employees at Grupo Empresarial Argos had the opportunity to experience internal mobility in the past year.
Read moreOn average the shares of Grupo Empresarial Argos doubled in value on the Colombia Stock Exchange
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