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Slovenia Business Week no. 19/2005: Merged Food Company Launches Operations

The company was entered in the register of companies following the merger a month ago

Droga Kolinska, the product of a merger between food companies Droga and Kolinska, officially began operations as a merged company on Tuesday, 3 May.

The company was entered in the register of companies following the merger a month ago. Droga and Kolinska have also ceased to exist as separate entities, Droga Kolinska said in a press release.

The registration of the new company also marks the beginning of the share swap - the ratio had been set at 1 Droga share per 14.25 Kolinska shares.

The issue of new shares is expected to be wrapped up by 16 May, which will be followed by the listing of the new shares on the Ljubljana Stock Exchange.

The united company, which will be based in Ljubljana, will have about 1,900 employees and revenues of nearly SIT 50bn (EUR 200m).

The biggest single owner of the merged company is energy and tourism group Istrabenz, which officially owns 45%. However, unofficially its stake is reported to be as high as 55%.

Source: Slovene Press Agency STA

Author: STA