Nelson Bocanegra

BOGOTA (Reuters). Colombia’s biggest conglomerate Grupo Empresarial Antioqueno has few options and very little time to resist hostile offers for shares in key companies.

Grupo Gilinski has made two offers to acquire GEA, a large group that includes more than 100 businesses.

Jaime Gilinski is a Colombian banker and one of the richest people in Colombia. He owns GNB Sudameris. The GEA has been trying to shake up its previously peaceful conglomerate with tightly interwoven holdings. It was this arrangement that protected it until recent times from possible takeovers.

GEA is a grouping of many Colombian companies. These include Nutresa Food Producer, Grupo Argos Industrial Conglomerate, Bank Bancolombia (NYSE :), Cementos Argos cement-maker, Celsia Energy Generator, and Proteccion Pension Fund.

Grupo SURA Investment Holding Company, with 20% to 50% ownership in many GEA businesses, is the crown jewel of its crown.

Gilinski, with support from Abu Dhabi’s Royal Group, launched a public purchase offer for Nutresa’s shares up to 62.625%. The acquisition was worth approximately $2.2billion.

Gilinski has not given many interviews but stated to local media that he believes the company is a great investment.

Gilinski said that Royal Group, an investment group headed by Tahnoon Al Nahyan who is the United Arab Emirates’ national Security advisor, only finances the deal.

Nutresa offered a unique opportunity on Colombia’s market. It was both unprecedented in size and its attempt to compete with GEA. This offer has been extended through January 12.

Three weeks later, the market was shocked when Gilinski offered to buy Grupo SURA at a price of as high as 31.68%, for a total of $1.19 trillion, according to Reuters stock market data.

Argos as well as SURA are not planning on selling their Nutresa stakes to Gilinski.

Following the offers announcements they stated they were looking for international partners.

Laura Triana of Acciones y Vaores brokerage stated that “It’s a very hostile environment for (GEA).” Gilinski’s arrival from both the fronts limits Grupo SURA or Grupo Argos coverage.

Although major shareholders such as GEA members may make counteroffers – especially if the managed to raise funds international partners – it is not impossible to keep track of time and Gilinski’s financial strength is greater thanks to Royal Group backing.

Independent analyst Daniel Escobar stated that the authorization of Nutresa’s initial public offering was granted so fast, that it is difficult to imagine how soon a counteroffer strategy could be developed.

The share price of Nutresa has increased by almost 30% since Gilinski’s announcement, however it still falls below the $7.71/share he offers.

Market participants believe Gilinski undervalues Nutresa, SURA. These criticisms were also made by SURA/Argos which cited independent valuations from major banks.

Escobar said that Gilinski does not pay any control premium. It’s almost fair price for Gilinski, which is normal in hostile buying operations.

The official announcement by Grupo SURA of its offer has been made, Reuters was informed this week.

Gabriel Gilinski told Reuters his son Gabriel that he would not be able to comment until the public auctions have ended. Grupo Argos, Grupo SuRA, and Nutresa spokespersons refused to comment.

Argos also stated that they will accelerate efforts to combine multiple investments in roads and airport concessions as well as energy and real property into one vehicle, which it plans to list at the New York Stock Exchange.

Analysts believe that Gilinski may have made an offer to Argos, and that public offers could help him regain his lost asset Bancolombia bank.

Grupo Gilinski provided the sale of Banco de Colombia to GEA, which was then Banco de Colombia. After a decade-long dispute regarding the manner in which the payment was made, the matter ended up being settled by the two companies in 2010.

On condition of anonymity, two brokers spoke with Grupo Gilinski personnel handling public offers. They stated that although Gilinski has his main focus on accumulating stakes within GEA businesses, it is obvious that he wants to get to Bancolombia using the Grupo SURA offer.

According to a Nutresa representative, “When they listen to you the hostile tone is evident… They are going after all.” Gilinski will remain in the Nutresa group if he buys. He can then go to Bancolombia in the future.

Grupo SURA holds approximately 46% of Bancolombia shares.

Bancolombia had no comment.