Pan European Terminals has accepted a 22p a share bid from Belphar Ltd having rejected a bid at the same level at the end of 2013.
The bid values Pan European Terminals at £23.4m. Belphar already owns 29.9% and adding the acceptances already received it effectively has control over 69.5% of the share capital. Belphar also owns £8.85m of convertible loan notes which it has not been able to convert into ordinary shares because shareholders did not agree to the issue of more shares.
The company’s board invited Belphar to resume talks. Belphar owner Khofiz Shakhidi has experience in the former Soviet Union. Pan European Terminals has been in dispute with its joint venture partner in the Rosbunker terminal in Kaliningrad. The company was offered the chance to buy out the partner but they have not agreed a price and the asset remains frozen.
The political uncertainty in Ukraine and Russia has hampered Pan European Terminals and it may write down the value of the joint venture investment.
The company owns another terminal in Russia and other terminals in Denmark and the Netherlands. The financial position of the business makes it difficult to acquire further terminals.
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