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EBRD makes ECU 24 million equity investment in CSFR food company
The European Bank for Reconstruction and Development today announced it has approved an equity investment of CKr 900 million (ECU 24 million) in Cokoladovny, a joint stock company which is the largest food manufacturer in the CSFR. The total investment in the project is around ECU 160.5 million.
This investment will facilitate the privatization and restructuring of Cokoladovny providing the Company with the financial, technical, sales and operational support necessary to operate successfully in a competitive free market. It will result in the preservation of employment and support the large number of Small and Medium Enterprises that supply Cokoladovny with raw materials and distribute its products
The other principal stockholders of Cokoladovny will be a Joint Venture BSN/Nestlé, the CSFR National Property Fund, Investicni Banka, and the CSFR National Restitution Fund. A small shareholding from the Joint Venture BSN/Nestlé stake will be set aside for sale at a discount to the workers and management of Cokoladovny. The Bank will be represented on the Board.
The company concentrates on chocolates, confectionery and biscuit and has a strong position in the domestic market. The transaction is conditional upon a favourable ruling from the European Commission on competition. Closing is expected to be at the end of January.
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