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EBRD acquires 8.33% stake in Agrokor
Investment supports regional expansion; IPO preparation
The EBRD is acquiring an 8.33 per cent equity stake in Agrokor, the largest
food manufacturer and retailer in Croatia, to help the company implement its
long-term strategy to maintain the leading position in the country as well as
Southeast Europe in its core businesses.
The Bank will invest up to €110 million for the equity stake that will also
help Agrokor restructure its balance sheet following a series of domestic and
foreign acquisitions. It will also help the company prepare for an initial
public offering in the future.
EBRD President Jean Lemierre said Agrokor is a successful company growing
regionally, promoting economic growth and jobs in Croatia and beyond. The
company is an example to domestic businesses of what can be achieved on a
regional level, said Mr Lemierre. The Bank’s investment will enable Agrokor to
build its business, further boosting domestic growth and at the same time
raising its profile among investors for an IPO, he added.
Agrokor President Ivica Todorić emphasized how Agrokor, as one of the largest
regional companies, today has a position on the global markets, proving its
long term, clearly defined strategy and vision, and that this was based on the
knowledge and skills of the management of the company. The EBRD investment in
Agrokor absolutely confirms these values, and moreover, the investment will
enable Agrokor to further develop its core businesses internationally,
supporting its growth.
Established in 1976 by Mr Todorić, Agrokor is today one of the most successful
companies in Croatia and is the leading domestic producer and retailer of food
products – including mineral water, icecream, edible oil, margarine and
mayonnaise – in the country and regionally.
This latest investment builds on the long-standing cooperation between the
EBRD and Agrokor. In 2000, the Bank provided Agrokor with a €170 million
syndicated loan for restructuring and regional expansion, and in 2004 the Bank
financed Agrokor’s icecream subsidiary Frikom in Serbia with a €13 million
loan.
To date, in the agribusiness sector alone, the EBRD has committed around €4
billion in more than 280 projects across central and eastern Europe and the
Commonwealth of Independent States. In Croatia, Bank has invested €1.3 billion
in around 76 projects, and expects to invest a further €100 million in the
country in 2006.
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