Podravka considers whether to participate in the acquisition of Fortenova’s agriculture

From Podravka, which is perceived in public as the most desirable, if not the most likely, interested party for the acquisition of Fortenova’s agricultural business segment, it has been confirmed that informational materials have also arrived at its address, with which Fortenova Group has initiated the process of gauging interest for the potential sale of the agricultural business area.

– Podravka Group is strategically focused on business development that includes possible acquisitions as well as investments in agriculture. However, at this moment we are unable to communicate the details of these plans. Regarding the process announced by Fortenova Group, we will review the conditions and based on them decide whether we will participate – it was stated from Podravka to Dnevnik Nove TV.

The total portfolio of Fortenova’s agricultural business area is unofficially estimated at around 400 to 500 million euros, while the market value of its flagship, the company Belje plus, was estimated by the consulting firm Caper exclusively for Lider six months ago at an amount between 272 and 340 million euros. This estimate refers to EV (Enterprise Value), that is, the value excluding the impact of cash and debt.

As a recent Agreement on Division and Acquisition was conducted between Belje plus and the previously inactive Fortenova company Aisle 40, under which part of the assets, obligations, and legal relations of Belje plus were transferred to Aisle 40, last year’s Caper estimate is likely very close to the amount that Fortenova could expect for Belje in non-binding offers expected by the end of March.

Let us recall, Fortenova Group has initiated the process of gauging interest for the potential sale of its agricultural business area. This obligation was assumed by Fortenova through a refinancing agreement of the existing bond in the amount of 1.1 to 1.2 billion euros with the investment firm HPS Investment Partners concluded at the end of June last year. One of the conditions for refinancing, namely, was that Fortenova must start the process of potential sale of the agricultural business area by the last day of last year.