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Slovenia Business Week no. 12: Istrabenz Holding Publishes Takeover Bid for Droga Kolinska

Istrabenz, which already holds a 55.63% stake in Droga Kolinska, will offer SIT 2,450 (EUR 10.23) per share for the remaining shares

Istrabenz holding published a takeover bid for the food company Droga Kolinska after its supervisory board approved the move at its session on Wednesday, 15 March.

Istrabenz, which already holds a 55.63% stake in Droga Kolinska, will offer SIT 2,450 (EUR 10.23) per share for the remaining shares.

Istrabenz CEO Igor Bavcar told the press that the takeover is a logical step, after the successful purchase of Kolinska and its merger with Droga last year.

The company moreover notified the securities market watchdog and the Competition Protection Office of its bid.

The Ljubljana Stock Exchange (LJSE) halted trade in food company Droga Kolinska and Istrabenz on Tuesday, 14 March, following media reports on the acquisition.

The head of Istrabenz's supervisory board Janko Kosmina believes that a takeover would result in greater profitability of one of Istrabenz's key companies.

Droga Kolinska employs some 1,900 workers. It plans to end 2006 with SIT 50bn (EUR 208.68m) in revenues and a profit of over SIT 2bn (EUR 8.34m).

The company posted a net loss of SIT 196.53m (EUR 820,300) in the period between May 2005 and the end of the last year.

Bavcar moreover rebutted media reports that a deal was about to be concluded on the establishment of a joint holding between Slovenian retailer Mercator and Serbia's grocers Delta and Konzum.

Istrabenz, as one of Mercator's larger owners supports the grocer's management in looking for strategic partners, he added.

Source: Slovene Press Agency STA

Author: STA