E-Malt.com News article: 3558

Serbia's market regulator has cleared a bid by Slovene brewer Pivovarna Lasko for a stake of up to 33 % in the leading drinks firm Knjaz Milos, the regulator said on Thursday, October 28, according to Reuters. The company from the ex-Yugoslav republic of Slovenia was the third bidder for Knjaz to ignore limits, which the government had tried to impose on minimum price and terms for the sale. "Lasko offered to buy between 25 and 33 percent of Knjaz at 18,000 dinars ($301) per share," a source familiar with the offer told Reuters.

Serbia's government had invited investors to buy 72 percent of the firm at a minimum price of 20,000 dinars ($335.9) per share, which valued Knjaz at about 120 million euros ($153.5 million) or three times its book value. The 72 percent stake comprises 41.28 percent owned by the state and 30.59 percent held by small shareholders.

The government wants the buyer to immediately promise to invest 20 million euros in the company, keep on all the workers for three years after the acquisition and spend 5.0 percent of profit after tax in the first year to pay bonuses to employees. It has said it would dismiss price offers below 20,000 dinars.

While the government believes the price is right for a company covering 60 percent of Serbia's bottled water market, analysts say its 20,000 dinar floor is too high. "The unreasonably high price is simply unacceptable to corporates such as Coca Cola (KO.N: Quote, Profile, Research) . That's why Coca Cola-like giants don't bid for Knjaz," an investment analyst said.

Apurna, an 80-20 joint venture between General Biscuit, which is 100-percent held by French food company Danone (DANO.PA: Quote, Profile, Research) , and Serb-born National Basketball player Vlade Divac, has offered to buy 50.01 percent of Knjaz for 17,500 dinars per share.

The first to submit a takeover bid was UK-based fund FPP Balkan Ltd., which has already purchased a 25 percent equity stake in Knjaz for 17,200 dinars and is now offering to buy at least 10 percent more at 22,000 dinars. All three bidders are expected to improve their offers ahead of the closing date for final bids on Nov. 15.


30 October, 2004