Czech investment group R2G will launch a tender offer to all shareholders of Prague-listed nonwovens manufacturer Pegas Nonwovens at an 8% premium over the company's closing price last week, it said on Monday.
The R2G investment vehicle R2G Rohan Czech said in a statement it would offer a price of 1,010 crowns ($44.50) per share and added it would submit the offer document to the Czech National Bank for approval.
R2G is Pegas' second biggest shareholder with 6.6% of shares as of mid-June. Wood Textiles Holding owns a quarter of shares. However soonafter the announcement, primary shareholder Wood Textiles Holding, which holds a quarter of shares, said it was not considering a sale.
"At the moment we regard the long-term growth potential of Pegas. So we are not changing our strategy, which is long-term," Wood Textiles director Petr Vosvrda told Reuters. "We are a shareholder since 2009 and are not considering a sale."
Pegas, with a market capitalisation of $383 million, runs eight production lines at two plants in the Czech Republic as well as a one-line operation in Egypt. It announced earlier this year, it was investing another line in South Africa.