News

VELPRO – Centre to merge with Konzum Business

18.12.2019.

Further strengthening of wholesale and utilisation of synergies at Fortenova Group level

Fortenova Group made the decision that at the end of 2019 VELPRO-Centar plus would merge with Konzum plus. The objective of such merger is to additionally strengthen the Fortenova Group wholesale segment, with the largest wholesale in Croatia operating under the wing of Konzum, Croatia’s largest retail company. At the same time, such move will result in significant synergies and increased operational efficiency. The amalgamation will also provide for numerous other advantages, primarily the optimisation of assortment which will be formed to meet customer needs in all sales channels, and for a stable coverage of the national market with a high level of supply and distribution services, particularly during the tourist season. The main pillar in strengthening the distribution are its employees with long-standing experience, the distribution fleet with more than 150 delivery trucks, as well as 16 cash&carry and distribution centers, with further modernisation of sales premises and processes planned.

All current business partners of VELPRO-Centar plus will continue to be an important part of the merged chain’s operations, particularly Plus market and other small storeholders to whom Velpro centar has been a significant strategic partner in developing independent retail in Croatia for many years. Thus VELPRO-Centar plus does business with more than 450 legal entities under the small store brand Plus market and has strategic cooperations with all small storeholder associations across Croatia. At the same time, given that this is a merger process, the new company shall assume the obligations from all existing contracts and agreed distribution terms, which also applies to public procurement contracts. VELPRO Centar plus shall continue to be present in all sales channels (Horeca and Retail).

Ivica Pivar, Director of VELPRO Centar plus, said: „VELPRO – Centar plus has so far been the largest wholesaler on the Croatian market and after the merger with Konzum we will additionally strengthen our business, particularly its further development and long-term sustainability. Significant synergies that we will realise by a more efficient assortment, supply chain and entire operations management will enable a major improvement of overall services to our end customers – small storeholders and independent retailers, through Plus market stores, HoReCa, as well as in the public procurement segment.

VELPRO – Centar plus has 16 wholesale centers in Croatia and employs more than 800 people in total. For most of the employees the amalgamation process actually means to return under the wing of Konzum, within the scope of which VELPRO Centar plus operated until 31 December 2015, which provides employees with additional security as it ensures the long-term sustainability of business and shifts in development.

Slavko Ledić, CEO of Konzum plus, stated on this occasion: „By merging with VELPRO-Centar plus Konzum shall additionally strengthen its market position in all key indicators. Konzum shall thus generate an additional HRK 1bn in total revenues, its network will expand to 16 wholesale centers in Croatia and our team will grow to 11,000 employees. 800 of them, coming from VELPRO-Centar plus, will serve more than 4,500 wholesale customers. The large team of Konzum and VELPRO employees will have a common goal and mission, though – besides being the leader on the retail market, to also be the most successful wholesaler in Croatia, which will create new values for our employees, customers, suppliers and all other stakeholders.“

Slovenia unfoundedly expropriates Agrokor d.d.’s private property by interim measure of seizure of Mercator d.d. shares Fortenova group

18.12.2019.

The Public Agency of the Republic of Slovenia for the Protection of Competition (Javna agencija Republike Slovenije za varstvo konkurence (AVK)) passed a decision on December 16th, 2019 whereby it has temporarily seized the shares of Mercator d.d. from Agrokor d.d. Unprecedented in the working practice of this Slovenian regulatory agency to date, this decision amounts to an expropriation of the private property of Agrokor d.d. by way of an interim seizure of Mercator shares, without any underlying court decision and with no valid legal justification.

The seizure is based on a disproportionate, non-final penalty in the amount of EUR 53.9 million, as well unprecedented in the practice of this regulator. This penalty, imposed by AVK in September 2019 in relation to a concentration case, has been appealed by Agrokor. The non-final penalty is clearly disproportionate since the company in question, Costella d.o.o., generates only slightly more than EUR 1 million in revenue yearly. This company was acquired by Ivica Todorić, ie. Agrokor AG from Switzerland, back in 2016.

The seizure of Mercator shares is in itself also largely disproportionate, since the shares in question have an appraised value of in excess of EUR 140 million, and the appealable penalty – that is being contested – is in the amount of EUR 53.9 million.

Moreover, according to AVK’s explanation, the interim measure of seizure of Mercator d.d. shares was passed pursuant to the Misdemeanor Act, in particular the provisions of that Act which in their essence apply to traffic offences or similar offences, which are discovered in flagranti, committed by foreign nationals – natural persons in the Republic of Slovenia.

Therefore, Agrokor considers this act of seizure of shares as a gross, intentional misapplication and misuse of law, committed by a state regulatory body that is supposed to enforce the national laws and whose head officers are appointed by the Parliament of Slovenia as the supreme legislative body of the country.

By way of background, the Misdemeanor Act which has been applied in this case to seize shares, essentially provides for the possibility of interim seizure of the driver’s license or car from a foreign national who was for example driving too fast, for as long as the fine is not paid, as there is a reasonable likelihood that the accused may escape, which would result in possible non-payment of the fine. The core pre-conditions that must be satisfied under the Act in order for a temporary seizure to be imposed, are that the infringer would either escape abroad or seek to hide himself. However, it goes without saying that neither of these pre-conditions can be fulfilled with respect to a validly existing foreign legal entity (given that such an entity can neither “run away” nor can it “hide itself”). In addition, the purpose of the law is to provide immediate protection. The written resolution has to be served on the infringer within 3 hours and the courts should decide on the appeal within 48 hours, whereas in the case at hand AVK waited for two months to seek temporary seizure, which in addition casts doubt on AVK’s intentions.

Although AVK has in its practice to date never seized any property from anyone as a means of security for a payment, let alone pursuant to the Misdemeanor Act, which has been in force since 2006, in the current case, by inadequately applying that law, it has now seized Agrokor d.d.’s 69.57 per cent share in Mercator d.d., allegedly as a means of security for paying the non-final penalty in the amount of EUR 53.9 million, against which Agrokor has sought court protection based on firm arguments.

By way of reminder, due to not having reported the concentration of the companies Agrokor AG and Ardeya Global Ltd., AVK passed a decision on September 24th, 2019 imposing a fine in the amount of EUR 53.9 million on Agrokor as legal person and EUR 5.000 for the accountable (natural) person. According to AVK’s explanation, by that concentration Agrokor acquired a 100 per cent share in the company that owns the Slovenian company Costella d.o.o. and was, pursuant to the Slovenian Competition Act, allegedly obliged to report the concentration within 30 days of signing of the takeover agreement. As such a report was not filed, on April 9th, 2019 AVK instituted proceedings to assess the concentration ex officio.

Agrokor has both publicly and directly explained that it considers this decision of the AVK to be completely unsubstantiated, since all decisions related to the above described acquisition were made and executed solely by Ivica Todorić alone, without the knowledge or participation of any other member of the then Management Board of Agrokor d.d. and thus the acquisition had nothing to do with Agrokor d.d., but with Agrokor AG from Switzerland, which has not been under control of Agrokor d.d., but was initially run solely by Mr. Todorić and since 2017 by an administrator/commissioner appointed by the Swiss court, who in October 2019 sent the concentration form to AVK on behalf of Agrokor AG.

Furthermore, the decision of AVK imposing the EUR 53.9 million fine is not final, as Agrokor filed a request for court protection against it, which was submitted to AVK on November 8th, 2019. But AVK has unexplainably not yet forwarded this request for court protection, filed by Agrokor, to the competent County Court of Ljubljana in order to allow the court to decide on the request for court protection and has instead by its own decision, without participation of the court, on December 16th, 2019 initiated the temporary seizure of Mercator d.d. shares owned by Agrokor d.d.

To put the disproportionality of the AVK ruling imposing a fine on Agrokor in the amount of EUR 53.9 million, as well as of the seizure of Mercator shares as alleged security for the collection of that fine into context, it is important to note that Costella d.o.o. is a company that globally generates only slightly more than EUR 1 million of revenue per year. This fact clearly indicates how disproportionate the magnitude of the fine imposed by the AVK is, let alone the seizure of Agrokor’s Mercator shares. It is also worthwhile mentioning that back in 2006, when the Misdemeanor Act was undergoing the Slovenian Parliamentary procedure, the Parliaments’ legislative and legal body expressly warned about the possibility that in some instances seizures under the law might be significantly disproportionate.

As regards the magnitude of the fine, by way of comparison, the European Commission fined Canon EUR 28 million for not having reported a concentration by which it acquired control of Toshiba Medical Systems and has previously in similar circumstances fined Electrabel EUR 20 million with respect to its acquisition of Compagnie Nationale du Rhône, where the acquired company had generated at least EUR 25 million in not less than three countries, otherwise the European Commission would not have been involved in the first place.

Historically, the AVK has never imposed a fine of more than several hundred thousand euros. In fact, its previous highest fine ever in the context of acquisitions and takeovers amounted to around EUR 150.000 (belated concentration report), while the fine for Pop TV in the amount of EUR 4.9 million was later declared null and void by the court in the judicial part of the misdemeanor procedure.

The above arguments, individually and collectively, clearly indicate that AVK’s ruling on the fine is unsubstantiated and the Extraordinary Administrator of Agrokor has to express serious concerns that the ruling has only been passed to serve as a means to expropriate Mercator shares.

The seizure of Agrokor’s Mercator shares was executed without any court decision, pursuant to a law that as a rule applies mostly to traffic offences. Such actions, irrespective of the final outcome, render Slovenia exceptionally insecure for foreign investors and call into question Slovenia’s commitment to compliance with Article 63 of the Treaty on the Functioning of the European Union, which ensures that the fundamental principle of European Union of the free movement of capital between EU Member States is respected, and certain provisions contained in the European Convention on Human Rights, including the protection of private property.

We have today informed the Embassies of all EU member states in Slovenia, as well as the US and Russian Embassies, given the origin of the key investors in Agrokor, of the aforesaid facts. The Extraordinary Administrator of Agrokor shall continue to protect the company’s property with all available legal means.

Fortenova Group generates growth of all KPIs over Q1-Q3 2019 – total core business’s unconsolidated revenues reach EUR 2,6bn and operating profit EUR 231,7m Business

29.11.2019.

Peruško: The excellent results we have achieved reflect a number of activities aimed at raising overall operational efficiency

Growth of revenues, operating profit and operating margin as well as significant cost control due to operational optimization measures and improved efficiency are the most important features of Fortenova Group’s operations over the period Q1-Q3/2019.

The Group’s core business (retail and wholesale, food and agriculture) realized EUR 2.6bn of unconsolidated revenues or 3.5 per cent more compared to the same period last year.

At the same time, total unconsolidated operating profit of the core business (net of Mercator) reached EUR 231.7m. The major part of EBITDA growth was accounted for by the retail and wholesale segment with 19 per cent and the agriculture segment with a growth of 28 per cent. Thus operating profit of retail and wholesale for Q1-Q3/2019 amounted to EUR 62.1m and of agriculture to EUR 27m. Operating profit of the food segment was EUR 142.7m, or at the same level as in the corresponding period last year, due to the impact of bad weather on beverages and ice – cream businesses in the first part of the tourist season.

In a year-on-year comparison, pro forma consolidated revenues of Fortenova Group grew by seven per cent and amount to EUR 2.5 bn for the period Q1-Q3/2019 (net of Mercator).and consolidated operating profit reached EUR 200.3 m.

Konzum was the strongest generator of both revenue and operating profit growth in the retail and wholesale segment and along with the revenue increase of almost 4.8 per cent, the nation’s largest retail chain recorded a growth of all key performance indicators.

„Everything we have been able to realize over these nine months, and particularly over the two years since I have been with the company, provides lots of reasons for satisfaction. The excellent results we have achieved reflect a number of activities aimed at raising overall operational efficiency“, Fabris Peruško, CEO of Fortenova Group said when presenting the results to DR Holders, ie. the owners of the company and reminded them of several key events and developments which were crucial to the operations of Fortenova Group.

„Primarily, we have successfully prepared and implemented the creditors’ Settlement Plan, which was an extremely demanding task, without any significant negative effects on the businesses of our operating companies, our partners and suppliers. In parallel, we were negotiating the refinancing, which was by no means easy given that the company had practically only just emerged from bankruptcy. With the successful closing of the refinancing we realized the largest corporate debt issuance in Croatia and in the region. In addition, we have initiated numerous internal transformation activities and along with the ownership structure, through the settlement we have also redesigned the company’s organizational and governance structure, raised its corporate governance standards and strengthened the executive management with professionals who have international experience. Furthermore, we have initiated the divestment of four companies from our non-core business and of our real estate portfolio, featuring since recently, 143 properties. Most importantly, as our results clearly show, we have continuously raised operating profit and proved that we can accomplish the most important goals“ – Peruško highlighted.

As major challenges to the business in the forthcoming period Peruško mentioned the Mercator asset transfer processes in Slovenia and Serbia. Also, one of the challenges will be the Agricultural Land Act in Croatia which has negative impact on institutionalized agriculture as well as on Croatia’s GDP. In his opinion, the greatest challenge to the business in the long term, requiring a systemic solution, will be the negative trends in the region’s demography, not only in terms of reduced available workforce, but also in terms of a drop in the number of customers to purchase Fortenova Group’s operating companies’ products.

9M 2019 DR Holders update for publication

Fortenova Group extends list of properties to be disposed of Real estate

22.11.2019.

In July this year Fortenova Group launched a special website http://nekretnine.fortenovagrupa.hr in Croatian and English with a large offer of non-core properties owned by the Group’s operating companies. This week the list of properties offered on the website has been extended by a number of new properties located all across Croatia. Along with numerous commercial properties and agricultural land listed on the website, there are now also residential properties such as attractive apartments in Mikulići and Bukovačka cesta in Zagreb, an apartment in Samobor, attractive building land located at Zagreb’s Šalata (between Voćarska and Jurkovićeva streets) in the total area of 3255m2, land for investment buildings in the industrial zone of Kukuljanovo (Rijeka) in the total area of 31274m2, the former mill building in the center of Križevci, the former pig breeding farm Sremac in Rokovci (Vinkovci) as well as other business premises and land for investment construction, agricultural purposes and other.

For each property offered for sale the website http://nekretnine.fortenovagrupa.hr features a detailed description of its condition and terms of sale together with the upset price, as well as instructions on how to make a bid for a specific property. In addition, for commercial facilities the open house date and time when the facility can be visited and viewed is defined in advance. Binding bids for the purchase of properties can be submitted by 20 December 2019.

The submitted bids have to be binding and contain the name of the natural person or company – legal person, their PIN (OIB), contact, proof of residence or registered seat of the bidder, the designation of the property (ID of the property that can be found with each advertisement, starting with the designation „AGNE-____“) for which the bidder submits a written bid, the offered amount of the purchase price in kuna which has to be higher than the stated upset price, proof of payment of the security deposit, IBAN for the possible repayment of the security deposit, the statement of the bidder on accepting the terms and conditions of the sale-purchase agreement, the signature of the bidder and the list of appendices enclosed to the bid. The bidders should deliver their written bid in a closed envelope to the address: FORTENOVA GRUPA d.d., Marijana Čavića 1, 10000 Zagreb, with the designation – „Bid for purchase of property – ID No. AGNE-_______, Group Real Estate Management Division“. All details related to the terms and conditions of sale can also be found at the following link: http://nekretnine.fortenovagrupa.hr/en/terms-and-conditions/.

Since launching the website of Fortenova Group properties for sale more than 1.2 million clicks and views have been recorded. In the period since the properties have been offered for sale potential buyers have shown keen interest and tours and viewings of commercial locations have already been realized. The list of properties for sale shall continue to be updated on a regular basis and the website will soon be supplemented with new content and new properties.

Vina Laguna wines Win Three Gold Medals in Prestigious Competition in Italy Companies

30.10.2019.

Ledo Ice Cream Declared Best in the World Companies

30.10.2019.

Ledo’s Lino Lada ice cream was declared the world’s best ice cream, with the gold medal awarded to Lino Lada ice cream by the International Ice Cream Consortium at the competition held in Sweden, where Ledo products once again stood out due to their creativity, idea and production technology.

The International Ice Cream Consortium (IICC) is an association of all independent global ice cream producers, the purpose of which it is to exchange experience and acquire new knowledge through various educations and workshops. Each year their summit is held in one of the member states, with the highlight of the event being the presentation of awards in various categories.

Experts were particularly delighted with the unique form the the Lino Lada ice cream and the innovative soft dressing, but the decisive factor that made this ice cream become best in the world is the experience of the Lino Lada spread that was successfully translated into the ice cream.

The ice cream was created in cooperation with Podravka and launched on the market in April this year. The first batches were sold in only a few days, which made this ice cream the most sought after dessert.

„We take exceptional pride in this award and acknowledgment, confirming Ledo ice cream as the world’s best ice cream in the opinion of the industry, or independent global ice cream producers. This award is an additional acknowledgment of the committed work of our employees, and in particular our R&D team which has been transforming its creative ideas into finest ice cream and frozen food products. From year to year Ledo has been testing and developing plenty of various ice cream flavors and combinations, always with a view to meeting the requirements of its consumers, as they always come first. Being the best in the world is a great honour, as well as an obligation to keep producing highest quality ice cream going forward and to lead the way in terms of technological solutions, innovations and creativity on a global scale,“ said Marin Poljak, CEO of Ledo.

It is worth reminding that this is not the first acknowledgement to Ledo brands, as many awards have been won in various areas of operations, such as innovations, technical solutions and marketing communication. Thus the Hashtag project won the IICC award for the best commercial solution and the CROPAK award for the best graphic design. The company’s focus on quality and innovation is also confirmed by awards won for the most innovative ice cream, presented in previous years to the products Chocolate Cake on a Stick, Hot Love and Ice Snack, while best ice cream awards were presented to the products King Truffles and Blueberry Cake on a Stick, all awarded by the IICC Association.

Fortenova Group donates food worth HRK 3.3m Business

15.10.2019.

Fortenova Group – Croatia’s leading food donor

Over the course of 2019 until the World Food Day, celebrated on 16 October, Fortenova Group has donated food worth HRK 3.3m in total, which makes it the leading food donor in Croatia. The largest donor within Fortenova Group is Konzum, having donated food worth HRK 2.8m, while the rest has been donated by companies from the Food and Agriculture business segments: Zvijezda, Jamnica, Ledo, Pik Vrbovec, Belje, PIK Vinkovci, VUPIK and Agrolaguna. Fortenova Group is also major strategic partner to various non-profit organizations in donating food in Croatia. Particularly worth noting are the cooperation of Fortenova Group with Mreža hrane (Food Network), the Red Cross and its social self-service stores, SOS Children’s Village, soup kitchens as well as a number of other national and local institutions and associations.

The World Food Day is an opportunity to additionally highlight the two key global challenges related to food according to SDG2 (Sustainable Development Goals): the hunger challenge on the one hand and healthy, balanced and long-term sustainable nutrition on the other. Worldwide more than 820 million people suffer from hunger and an even greater number struggle with overweight. Research shows that more than 53 million Europeans cannot afford a quality meal every other day, while in Croatia more than a quarter of the population cannot afford a quality meal every day. At the same time the European Union produces 88 million tons of food a year which goes to waste, whereof Croatia accounts for 400,000 tons of discarded food or more than a thousand tons of food gone to waste every day.

The reasons thereto are many, from farmers who cannot sell their produce, to manufacturers who only use part of the raw material and the rest is discarded. The largest share of discarded food in the European Union, as much as 53 per cent, comes from households, as a result of poor planning and lack of education. Retail participates in food waste with around 5 per cent, as due to the complexity of donating procedures retailers usually opt for discarding the food, which is easier and cheaper for them. Nevertheless, this segment has seen significant changes, also in Croatia, with retail chains donating more and more food. They are headed by Croatia’s largest retail chain Konzum, which has been proclaimed Best Donor in Brussels in the food retailers category for the second year in a row, within the scope of the initiative of Croatian MEP Biljana Borzan and the coordinator of the Food Network platform Zoran Grozdanov.

„Within Fortenova Group, whose entire business is related to food, whether it be its production or retail, we have intensively been working on the challenges regarding food waste and the choice of health food. In pursuance thereof we have been recognized as Croatia’s greatest food donor. At the same time, through Konzum’s project of awarding customer loyalty such as Zdravoljupci (Health Lovers), we have in a fun way strived to make kids – from the earliest age on – and their families aware of the importance of daily fruit and vegetable consumption and a balanced and healthy diet. We have also placed a strong focus on the importance of encouraging local production and the consumption of domestic, local and seasonal products. We shall continue to pursue such approach going forward, through initiatives and projects intended to make an active contribution to making people aware of and educating them on these topics“ – explained Dubravka Jusić, Executive Director of Marketing at Fortenova Group.

Both this year and in the forthcoming period Fortenova Group and all its companies will continue to cooperate with local communities and associations across Croatia through the realisation of numerous food donations. The process of donating food at Fortenova Group involves a whole team of people who have exerted great efforts for food to be donated in a timely manner to those who need it most. At the same time, internal processes have continuously been improved and the procedures of ordering stocks optimized, primarily in order to reduce the total quantity of food with shelf life about to expire and also to donate it to the greatest possible extent. Besides the above, the Fortenova Group will continue to undertake numerous educational activities and projects intended to inform customers, employees, business partners and the entire public and make them aware of the importance of reducing food waste.

Agrolaguna and Agricultural Cooperative „Olive Growers of Istria“ sign cooperation agreement Business

04.10.2019.

On 3 October 2019 Agrolaguna and the Olive Growers of Istria Agricultural Cooperative signed a business cooperation agreement at the premises of the Craftsmen’s Center in Poreč.

The agreement with Agrolaguna provides olive growers within the Cooperative with processing capacities as well as a high level of quality and health safety of the processed oil as the basic assumptionS for branding their oil with the label of protected designation of origin, assigned to Istrian extra virgin olive oils at EU level. It is estimated that around 60,000 kg of olive fruit will be processed, resulting in around 7,000 l of oil, depending on the yield.

At the same time this cooperation has enabled Agrolaguna to increase production quantities, expand its network of olive growing contract farmers and indirectly invest in the further development of olive growing in Istria. Agrolaguna’s crushing plant has a capacity to process much greater quantities, which they hope to do in the years to come.

„I am very happy that we have started the cooperation with the Cooperative assembling such a great number of small olive growers, as this cooperation will be to our mutual benefit. I am glad that the Olive Growers’ Cooperative has recognized Agrolaguna as a quality partner, given that apart from the business interest, this agreement is also important to Agrolaguna as Istria’s largest agricultural company in view of the positive impact it has on the local community through the investment in the expansion and development of olive growing in Istria. Besides that, it also creates opportunities to work together on the development of products and the expansion of the market on which to place these products“ – said Mrs. Nerina Zec, Director of Finance, Accounting and Controlling at Agrolaguna.

The founding of the organization of olive and olive oil producers „Olive Growers of Istria“ was initiated by the olive growers themselves in cooperation with the Administrative Department for Agriculture of the County of Istria with a view to facilitating the common market placement of oil under one and the same label of protected designation of origin. The Cooperative comprises 55 olive growers.

„Securing processing capacities is an important assumption of the common market appearance and further branding of our oil, particularly when it comes to quality control in the process. Our goal is a high quality product of a higher price category and the cooperation with Agrolaguna makes it possible to meet these key assumptions in full“ – said Mrs. Katja Gašparini, Manager of the Olive Growers of Istria Cooperative.

Atlas and Kompas with their associated companies, Projektgradnja and Sojara are the first Companies in Fortenova Group’s Process of Divesting Non-Core Businesses Business

02.10.2019.

By distributing materials intended for potential investors Fortenova Group has initiated the previously announced process of divesting non-core businesses. The companies offered for sale are: Atlas, Kompas and their associated companies, a leading travel services provider in SE Europe; Projektgradnja, construction company from Slavonski Brod with a strong track record in public and private sectors; and Sojara, grain port terminal and storage facility located in Zadar.

In line with its strategy of focusing on the development of its core businesses – retail and wholesale, food and agriculture – and the planned exiting from non-core activities Fortenova Grupa undertook extensive preparations for the divestment of the aforementioned companies, including hiring advisors for steering this process.

Fortenova Group’s objective in respect of its non-core subsidiaries is to find strategic or finanical investors who will be capable of realising the great potential of each of these companies for the benefit of their employees, partners and other stakeholders. Fortenova Group’s exclusive advisors for the divestment of Atlas, Kompas and their associated companies are UMiUM and PKF.

Fortenova Group’s exclusive advisor for the divestment of Sojara Zadar and its assets as well as the divestment of the construction company Projektgradnja is Deloitte Croatia.

Atlas and Kompas – regional leaders

Atlas, Kompas Ljubljana, Kompas Poreč and the Kompas network are the regional leader holding more than 20 per cent of the market in Croatia and Slovenia and more than 15 per cent of the market in Montenegro. The company which has been attracting around 1.2 million inbound and outbound passengers a year is well-known for the full spectrum of services it offers (tour operator, travel agency and destination management company), high degree of recognition of its two strongest brands – Atlas and Kompas, and the long-standing presence on the market. The company has more than 3,500 business partners and over 600 employees.

In 2018 Atlas, Kompas and their associated companies generated EUR 219m of total revenues.

Projektgradnja – construction experts

Projektgradnja has been in charge of some of the largest and most demanding construction projects in Croatia and is capable of performing any type of construction work. Its key market advantages are good client diversification resulting in completed public sector, commercial and residential projects, as well as a highly qualified team consisting of over 200 construction experts, including 30 engineers. The total value of the 69 projects completed by Projektgradnja over the past four and a half years amounts to EUR 173.7m. Considering the forecasted 5 per cent growth in the Croatian construction sector over the period of 2019-2021, the acquisition of Projektgradnja may prove to be a lucrative investment for potential buyers.

Zadar-based Sojara is located in the city’s port terminal in the industrial zone. The factory features soya processing capacities and more than 150 thousand cubic meters of storage area. Its traffic connections are excellent.

Agrokor Financial Restructuring Project Receives Prestigious International Award in Cleveland Fortenova group

27.09.2019.

On 26 September 2019 in Cleveland Fabris Peruško was presented with the Turnaround and Transaction Award (TMA) for the financial restructuring of Agrokor, proclaimed by the industry in the USA to be the most significant international procedure of its kind in the world in the ‘international transaction of the year’ category and one of the world’s 12 most significant international restructuring procedures in 2018.

Fabris Peruško, Extraordinary Commissioner of Agrokor and CEO of Fortenova Group, accompanied by the domestic and foreign legal advisors Tin Dolički of the Law Firm Bogdanović & Dolički and Wolfram Prusk of the Law Firm Kirkland & Ellis, accepted the award on behalf of the entire team that ran the restructuring process of Agrokor during the Extraordinary Administration Procedure which resulted in the Settlement Plan between the creditors and its successful implementation.

„This award is yet another great international recognition to the demanding process of rescuing an exceptionally significant Croatian and regional company. We are particularly pleased to receive the recognition form professionals working on similar projects worldwide on a daily basis. The fact that in a competition of more than 100 global projects they have ranked the Extraordinary Administration Procedure at Agrokor among the best speaks on behalf of the demanding nature and scope of the restructuring and its impact on both the national and the regional economies“, said Fabris Peruško, Extraordinary Commissioner of Agrokor and CEO of Fortenova Group on the occasion of receiving the award and added:

„I would like to point out that the TMA award is an acknowledgment to a number of individuals who have in the various phases made a great contribution to the success and conclusion of each individual stage of the process. Hence this is an opportunity to thank them all once again. Amongst others – thank you to Ante Ramljak, the Extraordinary Commissioner in charge of the first phase of the procedure as well as the advisors and advisory teams that supported the work of the Extraordinary Administration and over the course of that stage as well as later in the process made a key contribution to stabilizing the company and achieving a settlement among the creditors. Our suppliers and business partners and particularly all our employees as well as customers were one of the backbones in saving the system. The Government of the Republic of Croatia, particularly Prime Minister Andrej Plenković and former Deputy Prime Minister Martina Dalić, played a crucial role not only in securing the legal framework for the Extraordinary Administration Procedure, but also later during the process, especially at times at which they invested their human and political capital in the successful completion of other key stages in the process, such as achieving the settlement among the creditors.

Unfortunately I cannot mention everyone by name, but thanks to all of them Fortenova Group – the company created by the implementation of the Settlement Plan of Agrokor’s creditors – today still operates on all markets of the region, employing more than 52 thousand people and slowly by surely reducing its leverage and becoming a healthy and prosperous company.

We have all together demonstrated exceptional social responsibility and proved to have the social capital required to deal with very complex problems. The international professional public has very well recognized the true effect of Agrokor’s restructuring, which was accomplished over a very short period“, said Fabris Peruško, Extraordinary Commissioner of Agrokor.

The TMA award is one of the world’s most important industry acknowledgements, as TMA is one of the world’s leading non-profit associations assembling experts who participate in restructuring projects worldwide. The award is presented by the Awards Committee that consists of thirteen members representing a cross section of TMA professionals – from legal to accounting and finance professionals and the winners are selected in a rigorous peer-review process of vetting the procedures nominated for the award in several rounds of analysing and valuating the data of the transactions

Change in the Executive Management of Fortenova Group Management

19.09.2019.

Fortenova Group Successfully Closes New Financing Business

06.09.2019.

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