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Bid Mounted to Complete Takeover of Newsstand Operator

Ljubljana, 10 October (STA) - Three companies that own a combined 65.46% stake in newsstand operator Delo Prodaja have published a takeover bid for the outstanding shares in a deal valued at EUR 846,900.

Newspaper publisher Dnevnik, its owner DZS and AB Sistemi, whose sole owner is Delo Prodaja, are offering EUR 5 per share in cash for what is the country's largest press distribution company.

In a bid running until noon on 7 November, the bidders are joined by M1, a financial asset manager which is one the biggest shareholders of DZS, according to a prospectus published on Friday.

The companies are running in concert with DZS chairman Bojan Petan, who owns 0.07% in Delo Prodaja, but is not involved in the latest bid.

M1 has joined the bid because it considers Delo Prodaja shares an interesting financial investment and is interested in further acquisition, the prospectus, published in Dnevnik and on the website of Ljubljana Stock Exchange, says.

Delo Prodaja distributes over 2.5 million copies of Slovenian and foreign newspapers and magazines across the country a month, operating more than 100 newsstands.

The company generated a net loss of EUR 1.54m on EUR 41.69m in sales revenue last year. Sales in the first half of the year were up 23% to EUR 24.82m, while net profit rose nearly six-fold to EUR 340,000.

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