The decision on which of the two offers received for the purchase of the county’s Sladorana is better should not be made by HFP solely based on the amount for the purchase of Sladorana shares, believes Željko Zadro, a member of the Management Board of Viro.
If the goal is to obtain as much money as possible for the shares, then it would be best for HFP to have offered them on the stock exchange. It is more important how much and when will be invested in the development of Sladorana and with which buyer its shares will be worth more, says Zadro. Although Kandit Premier initially offers 22 million kuna more (Viro offers 111, Kandit 133 million), Zadro claims that their offer is better overall, as they will start investing in Sladorana immediately at the beginning of 2009, while Kandit will only do so in 2011. Viro already has an approved EBRD loan, while Kandit Premier still needs approval from the owners of Slavonska banka in Klagenfurt.
Viro offers “binding letters of intent” that bank guarantees will be issued for everything HFP requested, for the purchase price, protection of workers’ rights, for investments, and for the replacement of guarantees, while Kandit only offers this for the replacement of guarantees, claims Zadro. Advantages also include that Viro has higher revenues, greater power with suppliers and customers, and is listed on the Zagreb Stock Exchange, which means that its operations are completely transparent. Kandit, as a limited liability company, does not have such transparency, which could be a disadvantage, thinks Zadro.
