No potentially interested parties submitted a non-binding offer during the sales process of Fortenova Group MidCo, a Dutch holding company that fully owns the Croatian retail and food group.
This emerges from a letter that the company’s management sent to unsanctioned co-owners and whose content was revealed by the online portal N1.
In April, the management announced the engagement of an investment bank to conduct a process that could eventually lead to a divestment of 100% of Fortenova Group MidCo.
According to the letter, the investment bank reached out to potential third party investors, while additional parties also contacted the bank.
No Bids Received
All potentially-interested parties that agreed to enter into a non-disclosure agreement were invited to submit a non-binding offer before 3 June, but no bids were received.
The fact that the current capital structure of the company contains sanctioned holders is prohibitive for considering any kind of bid, some parties have indicated.
As a result, Fortenova Group has now concluded that the sale of MidCo to a third party is not feasible at this moment.
Alternative options are being mooted to find a solution that will safeguard the sustainability and the value of the group’s business operations, while respecting the interests of all stakeholders, whether they are sanctioned or not.
Read More: Metro Cash & Carry Sees Strongest Sales Growth In Croatia
Alternative Solutions
Fortenova Group said it will now actively reach out to the largest non-sanctioned holders of depositary receipts and convertible bonds to explore alternative solutions.
Other non-sanctioned holders of depositary receipts and convertible bonds have also been invited to propose solutions.
According to N1, Fortenova Group is faced with two key obstacles in finding a buyer – 50% Russian co-ownership and unfavourable debt on a bond weighing over €1 billion.
Operating in retail, food production and agriculture, Fortenova Group is a leading company in South East Europe with more than 100 brands in its portfolio, many of which are the regional market leaders.
The businesses owned by Fortenove Group make annual revenues of more than €5 billion.
© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
