Grand coffee (Droga Kolinska) to buy famous confectionery industry Soko Štark Belgrade for €56m ?

Few days ago, Grand prom sent the offer for take-over of 100% of stocks of confectionery industry Soko Štark to the Securities Commission. Grand prom is strategic partner of company Droga Kolinska from Slovenia and it offers procurement of stocks at price of 900 CSD, which is over 30% of its bookkeeping value. The bidders say that Soko Štark today covers 15% of domestic market and that that transaction will cost about €36m. They would invest another €15m in equipment and €5m in social program.

Grand coffee, by the way, covers about 50% of the market of SCG, as well as 20% of the market of BIH. That company had income of €50m in 2004.

Share Fund holds property over 40% of stocks of Soko Štark, whereas 60% is in possession of minor stockholders.

The list of the companies interested in this Belgrade-based company contains names such as Salford (majority owner of company Bambi-Požarevac and several domestic dairies), Kraš, Nestle, Zepter ...