Biomax Rises to Record on Plans to Buy Majority Stake in Brio
Biomax Biocombustibles SA, a Colombian fuel distributor, climbed to a record as investors bet the company’s plan to buy a majority stake in larger rival Brio de Colombia SA will boost earnings.
Biomax, based in Bogota, rose 2.5 percent to 1,845 pesos at the close of trading in Bogota at 1 p.m. New York time, the highest price since listing in October 2009. Brio shares last traded on July 22 for 700 pesos.
Biomax said Dec. 27 that it intends to buy a controlling stake in Bogota-based Brio and may purchase all of the company’s outstanding shares. The offer period will start Jan. 5 and end Feb. 16, Biomax said in a regulatory filing.
“Investors are expecting Brio’s shareholders will accept Biomax’s offer,” said Jorge Zuniga, an analyst at Bogota-based brokerage Interbolsa SA. “This would be very positive. Brio has coverage in all of Colombia and has a bigger sales volume than Biomax. The acquisition would mean more than 100 percent growth for Biomax.”
Brio had a 4.9 percent share of Colombia’s fuel distribution market in 2007, according to figures on the company’s website. The same document put Biomax’s market share at 0.2 percent.
To contact the reporter on this story: Camila Russo in New York at crusso15@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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