Enjoei suspends purchase of Gringa

Enjoei suspends purchase of Gringa

Cash installment would exceed the limit defined by the buyer; stocks fall nearly 7%

Enjoei suspended the purchase of the luxury thrift store Gringa. With shareholders preferring cash to betting on the operation by holding shares, the right of withdrawal of dissenting shareholders exceeded R$ 1.5 million, which was the limit set by Enjoei to effect the transaction. The statement was made on Friday night and was displeased: the paper opened in a fall of almost 7% this morning.

The company’s acquisition of actress and businesswoman Fiorella Mattheis had excited in the announcement, made in December. It would be Enjoei’s first M&A since the IPO. To take the Gringa, Enjoei proposed to pay R$ 14.2 million in cash plus 200 thousand shares. An earnout could increase the amount to 7 million shares – for the general support of shareholders, this would imply a recovery of the share in the medium term. But there were more people wanting to leave than to enter.

In the last month, Verde and Sharp, two assets that had been maintaining this belief in the recovery of Enjoei’s shares, reported having reduced their participation. Homes have put some of their donor position into lease contracts — a way to smooth out losses on the long position as the market bets on the stock’s decline. In 12 months, Enjoei shrank 81% on the stock market.

Despite the suspension, Enjoei still hasn’t given up on the business. The company stated that it intends to resume discussions with Gringa’s shareholders, in search of alternatives “that meet the interests of both parties” for the business combination.

Source: Value Pipeline

Related post

Due to a tight score, Cade approves the purchase of Gaspetro by Compass without restrictions

Due to a tight score, Cade approves the purchase…

The transaction of the Cosan group company, which involved a stake held by Petrobras, was approved by four favorable votes and…
Musk puts Twitter purchase in check and confirms Tesla workforce reduction

Musk puts Twitter purchase in check and confirms Tesla…

Billionaire leaves doubts about ‘unresolved issues’ in relation to the social network and says US recession is ‘inevitable’ Elon MuskO billionaire…
EU announces purchase of 110,000 doses of monkeypox vaccine

EU announces purchase of 110,000 doses of monkeypox vaccine

According to EU Health Commissioner Stella Kyriakides, the first deliveries should take place from the end of June. THE European Union…

Leave a Reply

Your email address will not be published.