April 27 (SeeNews) - Serbian companies Agropapuk and Industrija Mesa Djurdjevic have signed an agreement to acquire insolvent meat processing firm Srem Sid, the owner of Agropapuk, Bratislav Bogatic, has said.
The prospective buyers plan to invest a total of 3.5 million euro ($4.2 million) in the overhaul of Srem Sid's facilities, Bogatic said in a video file posted on the website of news agency Tanjug on Thursday.
You can subscribe to our M&A newsletter here
Agropapuk and Industrija Mesa Djurdjevic also consider an investment of 5.5 million euro to extend a farm in Novo Orahovo.
The two buyers will aim to attract all stock-breeders who worked with Srem Sid in the past, Bogatic added.
Srem Sid, which has been insolvent since 2001, will process up to 400 heads of cattle per day and export the meat to Turkey, under an agreement signed between the Serbian and Turkish governments, Tanjug said.
Serbia's government said in January it signed a free trade agreement with Turkey to boost its meat and food exports. The agreement will provide for duty-free exports of 5,000 tonnes of Serbian beef to Turkey annually and also sets quotas for sales of raw and refined sunflower oil, sunflower seeds and certain types of bakery products.
($ = 0.82839 euro)