Food and Beverage Business

Fortenova Group Initiates Interest Assessment for the Potential Sale of Agricultural Business Division

Fortenova Group Initiates Interest Assessment for the Potential Sale of Agricultural Business Division Fortenova Group Food and Beverage Business

Fortenova Group, a Croatia-based conglomerate, is considering potential interest in its agribusiness division from prospective buyers. The company recently released a “teaser to possibly interested buyers” and anticipates non-binding offers by the end of the first quarter. If a deal is made, Fortenova hopes to utilize the proceeds to decrease its debts and make strategic investments in its core business areas – retail and food.

The company’s agricultural business division consists of key operations such as meat processor Belje, vegetables supplier PIK Vinkovci and pig breeding-to-winemaking business Vupik. Its retail arm includes popular supermarket chains Konzum and Mercator while its food unit encompasses condiments and edible oils business Zvijezda, cheese maker Agrolaguna, and soft-drinks company Jamnica. Three years ago, the company sold its frozen-food assets to Nomad Foods.

Fortenova’s ownership restructure of the business involves a newly-formed Dutch holding company and aims to close in the second quarter of the upcoming year. Additionally, this restructure involves compensating sanctioned equity holders for their loss of interest, with Open Pass Ltd. shouldering the compensation.

The company has faced various legal challenges around its sale, including from Alketbi and SBK Art, and the transaction structure has proved to be intricate. Previous non-sanctioned shareholder configurations have been restructured with the approval of the majority. Fabris Peruško, CEO and board member of Fortenova, hopes that the drawn-out process will soon come to a close and believes that the consolidation of the equity and provisions for sanctioned shareholders will protect the investments of all stakeholders.

Fortenova also issued unaudited results for the six months up to June 2023, indicating a rise in revenue but a drop in adjusted EBITDA, as well as an increase in net losses.

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