October 27 (SeeNews) - Macedonian cigarette maker Tutunski Kombinat-Prilep (TKP) [MSE:TKPR] proposed to its shareholders to approve the merger of subsidiaries Tutunski Kombinat-Cigari and Tutunski Kombinat-Tutun into the parent company, TKP said on Thursday.
The move aims to increase the holding group's profit and lower its operating costs, as well as make better use of resources and workforce, TKP said in a filing with the Macedonian Stock Exchange.
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A vote on the merger is to be held at a TKP shareholders meeting on November 28, according to the filing.
Tutunski Kombinat-Cigari has total assets of 1.8 billion denars ($31.9 million/29.2 million euro), whereas the total assets of Tutunski Kombinat-Tutun are worth 736.8 million denars.
If TKP shareholders approve the proposed merger, TKP's capital will total 6.5 billion denars, the company said. After the merger, the two units will be delisted from the trade register.
TKP core business is the purchasing and processing of oriental tobacco, production of cigarettes, production of filter rods, different types of adhesives for the tobacco industry and other applications. TKP also operates a hotel in Ohrid.
(1 euro=61.5915 denars)