Cyprus-based Kappa Star raises stake in Croatia's Kras to 25%

Kras' share price has leapt to 1,050 kuna ($155.8/141.2 euro) by November 7, from below 400 kuna at the beginning of September, in heavy trading over the past two months, Zagreb Stock Exchange data shows.

On September 16, Kappa Star's holdings in Kras surpassed the 5.0% legally prescribed threshold which requires a shareholder to inform the public about its identity and holdings.

Kappa Star started buying Kras' shares in early September after Croatian meat producer Braca Pivac announced it plans to launch a joint buyout bid with local trading company Kras-ESOP for the remaining stake in Kras the two firms did not own yet.

However, Kras-ESOP's shareholders on September 30 rejected a proposal to sign an agreement with Braca Pivac for joint participation in the planned buyout bid.

On October 23, Braca Pivac launched a buyout bid for the remaining 69.27% in Kras it does not yet own at 430 kuna per share.

On Monday, Kras' management said it considers the price offered by Braca Pivac to be too low.

According to ZSE data, Braca Pivac holds a 30.73% stake in Kras as of November 8, an unnamed shareholder represented by a Raiffeisenbank custodian account owns 24.87%, while Kras-ESOP has 18.45%.

In Serbia, Kappa Star controls confectionery maker Jaffa Crvenka and paper and cardboard producer Umka, among others.

Kras' shares traded flat at 1,050 kuna by 1335 CET on Friday.

(1 euro = 7.40583 kuna)