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The decision facing thousands of shareholders of Demetra Investment is not an easy one. Logicom’s recent move to acquire 100% of the company for €1.55 per share has put investors in a tricky spot, especially after Logicom increased its stake in Demetra to 38.5%, forcing the company to make a formal takeover offer under the law. It is important to note that Demetra Holdings Plc holds a 10.3% stake in Logicom Public Ltd. and more than 20% stake in Hellenic Bank Public Company Ltd.
According to an article written by Panayiotis Rougalas, with 200 million shares in circulation and a large pool of individual investors, Demetra’s shareholders are now tasked with deciding whether to accept the deal or hold out for better terms. Logicom’s proposal offers a significant cash payout for the company’s 123 million remaining shares, totaling an estimated €190 million for 100% of Demetra. But the price per share – €1.55 – has left many investors questioning whether it’s worth taking the offer or holding out for a better opportunity.
The timing of the proposal is key, especially since Logicom’s recent acquisition of an additional 8.57% of Demetra, pushing its total stake to 38.5%. Although Logicom’s acquisition doesn’t immediately change the dynamics for shareholders, the company is now positioned to potentially increase its stake further, even if the public offer doesn’t "succeed." Analysts predict a 5% increase in Logicom’s shareholding is highly likely, but it’s unclear if this will sway investors or if they will hold out for higher prices down the line.
Before acquiring the extra shares, Logicom had already held 29.9% of Demetra with 59,832,100 shares, each valued at €0.70. Demetra has had a successful run, with a reported net profit of €42.4 million for the first nine months of 2024, though down from the €58.6 million earned in the same period the previous year.
For those considering selling, it’s worth noting that the market price for Demetra’s shares closed at €1.76 per share on January 20, 2025, higher than the price Logicom is offering. For some, that discrepancy may be enough to encourage them to hold off, hoping for a more favorable offer. But for others, the certainty of a cash payout might outweigh the risk of waiting.
As the clock ticks down, Demetra’s shareholders are faced with a pivotal choice – one that could significantly impact the future of the company and the value of their investments. With a potential 5% increase in Logicom’s stake on the horizon, the drama is far from over, and many eyes will be on the final outcome of the takeover proposal.
