Croatia's Fortenova gets non-binding bids for agri unit

"After conducting additional discussions with the buyers, Fortenova has decided to proceed to the next stage of the potential divestment process by inviting a number of selected local and regional buyers to take part in a due diligence phase after which the potential buyers will provide final binding offers," Fortenova said in a press release without disclosing the names of the potential buyers.

In a separate statement, Croatian food and pharmaceuticals manufacturer Podravka [ZSE:PODR] said on Thursday it has been invited by Fortenova to conduct due diligence on the agricultural business unit. The participation in the due diligence process is still non-binding, Podravka added.

Earlier this year, the company said it has approached multiple parties to gauge their interest in the division.

"We are happy to enter the due diligence phase with several exceptionally strong potential partners," Fabris Perusko, Fortenova Group’s CEO said. The final completion of a sale still depends on finding a strategic partner that will recognise the full value and potential of this business and its people, he added.

Formerly known as Agrokor, Fortenova is Croatia’s top employer and largest retailer and a major food producer. Its agriculture division includes meat producer Belje, cooking oil producer Zvijezda and food producers PIK Vinkovci, Vupik, Agrolaguna, and PIK Vrbovec.

Fortenova has said earlier it has invested heavily in the agricultural unit in recent years. Notably, one of the major investments made last year was the renewal of agricultural machinery, costing over 60 million euro ($65 million).

The group’s preliminary results for 2022 showed net revenues exceeding 5.2 billion euro ($5.62), adjusted operating profits of more than 300 million euro, and 1.1 billion euro of net debt.

($ = 0.926 euro)