Marfin Inv Group buys 30% stake in Vivartia

Marfin Investment Group (MIG) has acquired a 30% stake in Vivartia SA, a leading dairy producer in Greece and Cyprus at the price of EUR 25 per share in a deal valued at EUR 550 mln and at a 38% premium compared to the previous price of Vivartia SA.

According to an official announcement made at the Athens Stock Exchange, D. Daskalopoulos will remain as Executive Chairman of Vivartia with a 5.1% stake having disposed part of his 26.8% previous stake in the company.

Marfin strongman Andreas Vgenopoulos becomes non-Executive Vice-Chairman. Meanwhile, S. Theodoropoulos who will remain as General Manager with a 1.3% stake in the company sold 8% to MIG.

The Greek financial web site Reporter.gr said that Morgan Stanley had a price target of EUR 19 on Vivartia, even though the share price had been stable at EUR 18.40 prior to the deal.

At the price of EUR 25 per share and based on Morgan Stanley estimates, Reporter.gr said the price to earnings ratio of Vivartia is 30 times earnings for 2007 and 24 times 2008 forecasted earnings, even though the average Greek market p/e is only 17.5 times.

In Cyprus, Vivartia is the leading dairy producer having full control of Charalambides and Christis with a commanding share of the fresh milk, cheese and yogurt market and with Christis involved in halloumi exports.

MIG recently completed a EUR 5.19 bln capital issue and has said it will raise another EUR 10 bln through borrowing to invest in Greece, Cyprus and the south east Europe area.