Abu Dhabi Royals Back Colombian Billionaire’s Bid for Food Firm

(Bloomberg) -- A conglomerate with ties to Abu Dhabi’s royal family is aiding billionaire Jaime Gilinski and his son, Gabriel, in their attempted takeover of Colombian food producer Nutresa SA, a person familiar with the matter said.

Abu Dhabi’s Royal Group will partner with the Gilinskis in a proposed bid for a minimum of 50.1% of shares and maximum of 62.6% of Medellin-based Nutresa, according to the person, who asked not to be named as the details are not public. The deal, which could reach as much as $2.2 billion, could close before the end of the year, the person said.

As part of the transaction, United Arab Emirates lender First Abu Dhabi Bank will present a standby letter of credit for 50% of the maximum acquisition value, the person said. Sheikh Tahnoon Bin Zayed Al Nahyan, a brother of Abu Dhabi’s Crown Prince Mohammed bin Zayed, is listed as both firms’ chairman, according to the company websites.

The Royal Group and First Abu Dhabi Bank didn’t immediately respond to a message seeking comment outside business hours. A request for comment sent to GNB Sudameris -- where Jaime Gilinski is a board member -- wasn’t immediately answered. 

Gilinski is worth about $4.4 billion, according to the Bloomberg Billionaires Index. He built the bulk of his fortune through banking and private equity investments, and is a shareholder and board member of Banco GNB Sudameris, a Bogota-based bank. In 2019 he bought a stake in U.K. lender Metro Bank Plc.

His banking business will play a key role in the transaction. Nutresa holds a stake in Grupo de Inversiones Suramericana SA, a Colombian financial holding, which in turn is one of the main shareholders of Nutresa. While Colombian regulations prohibit non-banking firms from assuming 10% or more of a financial company, given Gilinski’s other banking assets, his group has authorization to circumvent the limit, the person said.

Grupo Sura’s management called for a board meeting to consider next steps, according to a regulatory filing posted Thursday evening. The company said that if Colombian regulators authorize the offer to go forward, it will request additional information. Sura and Grupo Argos SA combined hold a 45% stake in Nutresa.

Trading in shares of Nutresa, which makes goods including coffee, crackers, pasta and meat, was suspended late Wednesday following news of the takeover bid, which came with a near 38% premium on the previous closing price. A regulatory filings said the offering came from Nugil SAS, a firm with ties to the Gilinskis, according to Colombia’s company registry.

©2021 Bloomberg L.P.