February 14 (SeeNews) -
Bosnia's diversified holding company Badeco Adria [SAJ:FDSSR], majority owner of local tobacco factory Fabrika Duhana Sarajevo (FDS), has decided to shut down the factory due to financial losses, FDS said on Monday.
The supervisory board of Badeco Adria decided to close down FDS as the factory's losses in the past three years have reached 7.5 million marka ($4.3 million/3.8 million euro), FDS said in an e-mailed statement sent to SeeNews.
The decision will be put to the vote at a Badeco Adria shareholders meeting in early March, after which the 200 employees at the factory will be laid off and will receive severance pay.
FDS plans to halt its operations on March 31, local news agency Faktor quoted Muhamed Avdagic, president of Bosnia's Trade Union of Employees in Agriculture, Food and Tobacco Industry (PPDIVUT), as saying last week.
Badeco Adria is the legal successor to FDS, a former tobacco company which was established in 1880. The former company went into a restructuring process and changed its name into Badeco Adria in 2018. Badeco Adria is majority owned by Austria's CID Adriatic Investments (CID), which holds a 89.2% stake, Sarajevo Stock Exchange (SASE) data shows.
(1 euro = 1.95583 marka)