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German sugar group acquires EBRD's stake in Czech TTD
One of Germany's leading sugar producers, Zucker Aktiengesellschaft Uelzen-Braunschweig (ZAG) has bought 80 per cent of the European Bank for Reconstruction and Development (EBRD)'s stake in the Czech sugar company, Cukovar A Rafinerie Cukru Dobrovice A.S. (also known as Thurn Taxis Dobrovice) (TTD). The EBRD is retaining close to 5% of TTD and a representation on the Supervisory Board. Sucreries et Distilleries de l'Aisne (SDA) of France retains its majority shareholding.
Hans Christian Jacobsen, Director of the EBRD's Agribusiness team, commented: "As a minority shareholder, the EBRD has played its role as a catalyst, ensuring further investment and support for TTD during the post privatisation phase. The company has been modernised and is now the leader in its sector. While working with TTD, the EBRD has established a good working relationship with the strategic investor SDA and is looking forward to other joint investments with them in the region".
"In three years," Philippe Duval, Chief Executive Officer of SDA and Chairman of the Supervisory Board of TTD said: "contracts with beet growers have grown, from 3000 to 9500 hectares and the factory's capacity has increased from 1500 tons to 4500 tons of beets per day. In 1996 this will grow to 6000 tons. This brisk growth would not have been possible without the co-operation between EBRD, SDA and the local management. With ZAG's investment TTD will be able to continue its development and maintain its leading position in the Czech sugar market."
Dieter Ammer, Chief Executive Officer of ZAG, said: "We firmly believe in the fast and successful development of the Czech market and its integration in the European Union. As an adjacent market to Germany, our strategic interest is to monitor it and jointly develop TTD under the leadership of SDA".
TTD was the first sugar company to be privatised in the Czech Republic in 1992, when a majority shareholding was acquired by SDA. The EBRD acquired 32.9 per cent of the company in June 1993.
In France, the SDA group works with 1500 beet growers and employs 550 permanent staff. Its annual production averages at 350,000 tons of sugar and 700,000 hectolitres of alcohol distilled from beets and cereals. SDA's current consolidated turnover is more than FRF 2 billion.
ZAG's current turnover is approximately DEM 1.2 billion. The company has a European sugar quota of 410,000 tons and employs approximately 1000 people. The company sells its sugar in the domestic market via a subsidiary "NORDZUCKER KG".
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