By sending informational materials to the addresses of several potentially interested buyers, the Fortenova Group began the process of gauging interest for the potential sale of its agriculture business last week. Non-binding offers are expected, as reported by Fortenova, by the end of the first quarter, after which a decision will be made on whether to continue the potential sale process. As with the sale of the frozen food business concluded in 2021, the continuation of this process will depend on the quality of non-binding offers from potential strategic partners.
Fair Price and Development
– The continuation will be directed towards those who, in addition to paying a fair price, are willing to make the maximum contribution to further development and preservation of employment and the tradition of agricultural production in Croatia – states the company’s announcement, reminding that they have significantly invested in their agricultural segment in recent years, with one of the larger investments last year being the renewal of agricultural machinery in agri companies worth over 60 million euros.
Podravka is mentioned as the most likely buyer of Belje, Pik Vinkovci, and Vupik. Namely, while presenting Podravka’s business results, Martina Dalić, the company’s CEO, boasted that Podravka’s current value is around 1.2 billion euros, which is about 600 million euros more than two years ago.
– This is both an incentive for further growth and a foundation so that no one takes over the company. On the contrary, Podravka now has the power to acquire others – Dalić emphasized, expressing confidence that shareholders will support such plans.
– I have already mentioned that if any processes open up in the Croatian market, such as the potential sale of Fortenova’s portfolio, we will analyze it and decide – noted Dalić, who heads a company that, it is worth mentioning, is in the hands of the state, which formally controls the company through its ownership stakes, as well as pension funds.
There has been speculation in the media for some time, albeit without clear signals from the company, that Osijek’s Žito, owned by Marko Pipunić, is also interested in Vupik, Belje, and Pik Vinkovci. During the war years and Croatian transition, he took over the struggling IPK Osijek, PPK Valpovo, PPK Orahovicu, the Osijek sugar factory, and the Čepin oil factory, and not so long ago, he also launched his meat factory under the Dobro brand.
It should not be overlooked that Pipunić is one of the leading figures of the powerful association of Croats from BiH, Prsten, which has a huge influence in the HDZ. He once stated that merging Žito and Belje would be a “miracle.” According to unofficial information, Fortenova has allegedly already sent Žito an informational form with financial figures of agricultural companies and a request to submit a non-binding offer, but there are no comments on this topic from Marko Pipunić’s company.
Orban’s Gas Installer
Hungarian investor Lőrinc Mészáros is interested in Fortenova’s agribusiness, who has already taken over the Croatian company Rabo from Kneževi Vinogradi, the largest domestic apple producer. It is interesting to mention that Mészáros is also the owner and main sponsor of NK Osijek, as well as Orbán’s favorite entrepreneur. Mészáros is a former gas installer from the village where Viktor Orbán lived.
Opus Global, his company listed on the Budapest Stock Exchange, consists of about 30 companies engaged in asset management, insurance, agriculture, industry, construction, and tourism, and the Mészáros Group is one of the most significant European agricultural producers in the sectors of livestock, crop production, dairy, poultry, and viticulture, with over 50 thousand hectares of production area. Besides Rabo, this entrepreneur has also decided to try his hand in tourism in Croatia, with a 50 million euro investment announced in 2021 for the construction of the luxurious Riva’s Hotels & Resort in Ičići, near Opatija. The formal investor and partner in this project is also Talentis Group.
