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European Bank lends US$ 5.2 million to Hungarian frozen food company
The European Bank for Reconstruction and Development has signed a US$ 5.2 million (ECU 4.2 million) loan agreement with Zalaegerszegi Hutoipari Kft, a Hungarian company which processes, distributes and markets frozen vegetables, fruits and bakery products on the Hungarian and international markets.
The loan will be used to modernise and expand the company's processing capacity and upgrade product quality, thus enabling the company more profitably to take advantage of a developing domestic market and export opportunities.
Ron Freeman, Acting President of the EBRD, said "The company was the first regional frozen food company to be privatised and has a good reputation in its market. Our loan will allow the company to undertake capital investments and improve its earnings potential. It will also directly benefit Hungarian farmers by raising the value of their crops and increasing exports."
Zalaegerszegi Hutoipari Kft will be 50 percent owned by Shamrock Capital Investors III, Inc, a wholly owned subsidiary of Shamrock Holdings Inc, one of the largest private investment companies in the United States and owned by the Roy E Disney family. The other 50 percent of the company will be acquired by Sunfrost Ltd, which has entered into a conditional purchase agreement with Shamrock. Sunfrost is a leading Israeli frozen food manufacturing and marketing company.
Mr. Stanley Gold, President and Chief Executive Officer of Shamrock Holdings, stated "Shamrock is pleased that the European Bank is supporting its development plans in Eastern Europe and looks forward to working with the Bank on other projects in the near future."
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