January 30 (SeeNews) - Croatian food company Fortenova said on Tuesday it is exploring the sale of its agricultural unit and has already approached multiple parties to gauge their interest in the division.
The company expects to receive non-binding offers from potential buyers by the end of the first quarter, it said in a press release.
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The progress of the sales process, similar to Fortenova's sale of the frozen food business division in 2021, depends on the quality of non-binding offers from potential strategic partners. The focus will be on those willing to not only provide a fair price but also contribute significantly to the continued development, job preservation, and the tradition of agricultural production in Croatia, the company said.
Formerly known as Agrokor, Fortenova is Croatia’s top employer and largest retailer and a major food producer. Its agriculture division includes meat producer Belje, cooking oil producer Zvijezda and food producers PIK Vinkovci, Vupik, Agrolaguna, and PIK Vrbovec.
Fortenova said has invested heavily in the agricultural unit in recent years. Notably, one of the major investments made last year was the renewal of agricultural machinery, costing over 60 million euro ($65 million).
Should the sale be carried out, the proceeds would be used to further reduce Fortenova's debt and strengthen other core business areas, such as retail and food.
The group’s preliminary unaudited results for 2022 show net revenues exceeding 5.2 billion euro, adjusted operating profits of more than 300 million euro, with 1.1 billion euro of net debt.
($ = 0.922 euro)