With this investment, which gave AZ funds ownership of a 49.5% stake in The Garden Brewery, they are entering the segment of small and medium-sized companies, AZ pension funds - one of the largest institutional investors in Croatia, said in a statement earlier this week.
The capital increase confirms The Garden Brewery's plans to list on the Zagreb Stock Exchange (ZSE) in the next six months, the statement reads.
"We are not interested only in big companies but are also open to smaller investments and projects if they meet our criteria, which apart from successful operations also include willingness for maximum transparency and responsibility," the head of AZ pension funds' management board, Kristijan Buk, said in the statement.
"The Garden Brewery, along with its excellent results and clear vision for future development, has shown the highest level of professionalism and readiness to respond to all our questions and requests," Buk added.
The Zagreb-based brewery produces 7,000 hectolitres of beer per year and sells 30% of its output abroad, to the markets of the UK, Germany, Denmark and Australia, among others.
The head of The Garden Brewery's supervisory board, Tomislav Alpeza, said in the same statement that the company plans to use the proceeds from the capital increase to expand its production capacities in order to strengthen its position on existing markets and to conquer new ones.
The Garden Brewery also plans to acquire 51% of local burger maker Submarine.
"We are sharing a joint vision with the founder and owner of Submarine and are confident that the synergy in strategic thinking and creativity of the leading people of our two firms are guarantees for the successful growth and development of both brands," Alpeza said.
He added that in terms of corporate management, the two companies will keep their independence.
"Our seriousness and readiness to operate in a responsible and transparent manner is confirmed by the intention to list our shares on the Zagreb bourse in the coming six months," Alpeza said.
Croatia's central depository and clearing house, SKDD, said on October 9 it registered the 20.2 million kuna capital increase of The Garden Brewery. The company's share capital of 40.4 million kuna is now distributed in 80,807 regular shares of 500 kuna in nominal value each.
AZ pension funds are managed by Allianz ZB, a company owned by Allianz Zagreb and Croatia's Zagrebacka Banka.
