Podravka takes over Bambi and Aleva for EUR 100 million?

Croatia's Jutarnji List daily newspaper writes, citing the investment circles, that Podravka is getting ready to spend EUR 100 million on two acquisitions in Serbia. The Koprivnica-based company will soon submit bids for the takeover of the Serbian confectioner Bambi, the most famous product of which is Plazma biscuits, and Novi Knezevac-based Aleva, which is most famous for its namesake paprika.

The sources cited by this newspaper say that the total value of these acquisitions should amount to EUR 100 million, while Podravka considers taking out a classical loan, renting corporate bonds, or recapitalization as possible ways to collect necessary funds. Whatever method it chooses, investors are of the opinion that it will be no problem to collect the funds in the domestic market for these acquisitions.

Bambi, which last year registered a turnover of about EUR 75 million and turned a EUR 5.5 million profit, is currently run by the management of the company Salford whose director publicly announced in December 2010 that Salford would sell its companies in Serbia. Aleva is 100 percent owned by Flory Trading and it last year registered a revenue of about EUR 13 million and a EUR 1.8 million turnover. Jutarnji List speculates that Podravka may pay EUR 80 million for Bambi, while the rest should be enough for the acquisition of Aleva.