The subject of Croatia’s agricultural business, that are now part of Fortenova Group, is on sale and has been increasingly present in conversations recently. Today, Podravka notified that the Company was invited to finalize negotiations on this deal. Completion of the sales process will follow additional negotiations and coordination of the sales contract and obtaining all necessary approvals from regulatory authorities in Croatia and the region. At this point, the transaction price has not yet been announced.

Croatia’s agricultural jewels that are now part of Fortenova Group are on sale as they are not generating enough of additional value for the current structure. Today, Podravka notified the public on the stock exchange that the Company was invited to finalize negotiations on the purchase of agricultural companies of the Fortenova group as a preferred partner. Accordingly, Podravka and the Fortenova group signed an exclusivity agreement, which confirms Podravka’s position as the preferred partner. Consequently, Podravka will pay a EUR 15m deposit for this takeover.

Completion of the sales process will follow additional negotiations and coordination of the sales contract and obtaining all necessary approvals from regulatory authorities in Croatia and the region. The acquisition will be financed through bank loans and it is expected that the European Bank for Reconstruction and Development (EBRD) will be a partner in the transaction. Podravka noted that the Company intends to invest in the modernization of productivity of agricultural businesses. Finally, you can read in more detail on this topic and the key financials of the companies that are the subject of the transaction – here.

Podravka vs. CROBEX10 performance [July 2019 – July 2024]

Source: Bloomberg, InterCapital Research