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Zvečevo: Those who do not accept Flexway’s generous offer risk lower compensation in squeeze-out

Perhaps only a few experienced investors in the domestic capital market could secretly hope for such a high share price as Flexway Adriatic guaranteed to a considerable number of remaining shareholders of Zvečevo in its takeover offer last week. The price is €38.71 per share, which greatly exceeds even the most optimistic expectations.

For comparison, the lowest share price of that company in the last year was €2.20. By the end of March this year, when it was announced that Zdravko Alvir sold his ownership package of 75.2% of shares in Zvečevo to Flexway Adriatic, a company owned by Flexway DMCC from Dubai, the weak trading of shares had reached nearly €11, and after that, it jumped to €23.80, which is the level that the biggest optimists among the remaining shareholders hoped to achieve in sales.

After the announcement of the takeover offer, the shares rose to €38. It is logical to assume that in the four weeks that the offer is open, almost all remaining shareholders will be very willing to sell all their shares to Flexway, given that the new majority owner of Zvečevo announced that if it acquires 95% of the shares after this offer, it will promptly carry out the squeeze-out procedure, during which the share price will likely be lower than in the takeover offer.

The new owner of Zvečevo also outlines the next steps in its offer, from ensuring liquidity to meet the company’s loans and resolving debts to suppliers, to reorganizing the business and changing members of the Supervisory Board and renewing the Management Board. What exactly the renewal of the Management Board means, in which there are currently two members (Hrvoje Alvir as president and Ilija Karamatić as a member), is not explained, but it is stated that Flexway believes that the Supervisory Board, which will be changed at the next General Assembly meeting,’must act in accordance with high professional, expert, and moral criteria in appointments and generally in relations with members of the Management Board.’

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