Viro Announces call For GA when decision on merger with Tvornica Šećera Osijek, founding of newco Hrvatska industrija šećera and transfer of its shares will be made.

After struggling to post positive results for two years in a row Viro has at the end of 2018 signed joint venture deal with Tvornica šećera Osijek. Companies are basically joining their production capacity and they will establish a new company called Hrvatska industrija šećera in order to be able to compete more successfully on the EU market after change of market environment caused by the abolishment of production quotas by the EU. 

GA will take place on 2 May when decision on founding of newco Hrvatska industrija šećera and transfer of its shares will be made. Viro will end up having 60% of shares in the new company while Tvornica šećera Osijek will have 40% of shares in the new company. All entities will sell its assets and rights to newco as a results of the merger. Therefore on GA, decision will be made for Viro to sell all its assets and related rights and obligations to newco Hrvatska industrija šećera for HRK 196.3m, which is slightly above its equity of HRK 195.3m. To become effective decisions are pending approval of the Croatian Competition Agency on concentration.

Please see our overview of 2018 Viro’s unaudited financial results that we have published on 1 March on the following link.  To see our overview of Europe’s sugar industry click here.