June 19 (SeeNews) - Croatian business group Fortenova said it intends to launch the sale of its agriculture units as part of new financing with its current majority creditor, global company HPS Investment Partners.
"One of the terms agreed with HPS as part of the new financing is the commencement of a process for the potential divestment of Fortenova group’s agriculture division by no later than December 31, 2023," Fortenova said in a press release on Friday evening.
You can subscribe to our M&A newsletter here
Should the divestment take place, proceeds will be used for the group’s further deleveraging or for strategic investments in its core retail and food businesses, it added.
On June 27, the holders of Fortenova’s depositary receipts will vote on the group’s proposal to refinance the existing bond in the amount from 1.1 billion euro ($1.2 billion) to 1.2 billion euro with the HPS Investment Partners.
"After significant efforts to find financing with banks and bond markets, the Fortenova Group management has decided to enter a new financing for the period until 29 November 2024 with HPS, the existing leading non sanctioned creditor, provided that the DR Holders vote in favour of this proposal," Fortenova said.
Fortenova, a successor to collapsed concern Agrokor, is Croatia’s top employer and largest retailer and a major food producer. Its agriculture division includes meat producer Belje, cooking oil producer Zvijezda and food producers PIK Vinkovci, Vupik, Agrolaguna, and PIK Vrbovec.
The group’s preliminary unaudited results for 2022 show net revenues exceeding 5.2 billion euro, adjusted operating profits of more than 300 million euro, with 1.1 billion euro of net debt.
"The group liquidity was in excess of 280 million euro and the group achieved its best-ever ratio of total net debt to adjusted operating profits of 3.5 times," according to the press release.
Last week, Croatian media reported that no bids were submitted until the June 3 deadline in an international process for examining the interest of potential investors for the purchase of Fortenova Group MidCo B.V., the Dutch holding company that fully owns Fortenova.
($ = 0.917euro)