11/23/2010 CORPORATE

Atlantic Grupa formally takes over Droga Kolinska

Atlantic Grupa successfuly closed the takeover of Droga Kolinska, having payed the previous owner, company Istrabenz, the total sum stipulated in the sale-purchase agreement.

Acording to the agreement signed 1st July, enterprise value amounts to 382 million Euros, Atlantic Grupa took over the net debt of Droga Kolinska on the closing day, and payed Istrabenz the cash amount of 243.109 million Euros.

Upon the payment of the total price Atlantic Grupa becomes the actual owner of Droga Kolinska which is to be fully integrated into the system of Atlantic Grupa, aiming to further develop all business segments of Droga Kolinska, and utilize all planned synergies within the united new company. The position of the CEO of Droga Kolinska has been taken over by Srećko Nakić, formerly the Vicepresident for Distribution Division in Atlantic Grupa.

„Atlantic Grupa and Droga Kolinska are natural partners, which will in a way facilitate integration processes before us. We are determined to approach this upcoming phase with unchanged enthusiasm, as to equally successfuly conclude the last and finally the most important step in this takeover. We have recognized valuable brands, market positions and opportunities in Droga Kolinska, but most of all the valuable and hard working people behind them. We strongly believe that in joined efforts we will realize the plans we envisioned“, Srećko Nakić, the new CEO of Droga Kolinska was quoted upon the takeover.

„In the foundations of this transaction there lies a clear economic logic – it is about compatibility of the two companies in their activities, product portfolios and markets. Upon the closing of transaction, I would like to once again express my satisfaction with the work we've done, and particularly with professionalism and transparency exercised by all parties involved. I would also like to express my gratitude to our colleagues in Droga Kolinska for exceptional reception of Atlantic Grupa, equally in Slovenia, Serbia, and all other markets. I sincerely believe that our common efforts will result in the value added that we've recognized in our companies combined“, commented Emil Tedeschi, CEO of Atlantic Grupa.

The takeover of Droga Kolinska by Atlantic Grupa was financed with the company's own as well as the shareholders' capital (45 percent of the amount), mezanine financing with the European Bank for Reconstruction and Development (10 percent) and senior loan facilities by the Raiffeisen and Unicredit Groups (45 percent). In July, Atlantic Grupa successfuly conducted significant capital increase, collecting 83 million Euros for financing the transaction, and gaining EBRD as the new shareholder. In the shareholding structure of Atlantic Grupa currently dominates Emil Tedeschi with a 50.2 percent share, followed by EBRD with 8.53 percent and German development bank DEG with 8.49 percent, as the second and third largest shareholders.

The support from esteemed banks and development financial institutions is yet another proof of both stability of business model and quality of development strategy of Atlantic Grupa, hence the value of the latest takeover as well. Parallel support has been exercised by the company's largest shareholders that took part in the capital increase during the summer. Upon the merger, Atlantic Grupa becomes one of the largest regional food industries, with consolidated turnover of 640 million Euros, 4300 employees and own companies in 12 markets in the SEE region, Western Europe as well as CIS countries.