Fortenova Group has signed an exclusive agreement with Podravka d.d. to negotiate the sale of its agriculture division.
The decision follows the assessment of the binding offers received by Fortenova for the divestment of the unit, the company noted.
As part of the agreement, Fortenova will continue the negotiation process on closing a sale-purchase agreement exclusively with Podravka.
'Strategic Partner'
The Croatian conglomerate's agriculture division comprises the companies Belje, PIK Vinkovci, Vupik, Energija Gradec, Belje Agro-Vet and Felix.
Besides offering the highest price, Podravka’s bid also meets the criteria set in the transaction as the 'most desirable strategic partner' for these companies, according to Fortenova.
Fabris Peruško, chief executive and board member of Fortenova, explained, "We entered the interest gauging process for the agriculture division divestment with a view to maximising the value and identifying potential partners who would be able to guarantee the development and sustainability of this nationally important industry and securing the further development of its operations and employment, the result thereof being the economic prosperity of the entire region of Slavonia and Baranja. We have found precisely such a partner for our agricultural companies in Podravka."
'The Best Possible Decision'
Peruško added, "Podravka’s additional advantage is the fact that with it we would gain a strategic partner that would continue to provide high-quality domestic raw materials for further processing and production for PIK Vrbovec and the entire Fortenova Group system.
"Therefore, I am sure that by selecting Podravka as our exclusive partner to negotiate the details of the sale-purchase agreement, we have made the best possible decision not only for the agricultural companies and our employees, but for all other stakeholders as well."
The deal is subject to approvals from the market competition authorities, the company added.
