RC2, Darby become sole owners of East Point Group

Two international funds from the U.S., Reconstruction Capital II (RC2) and Darby Converging Europe Mezzanine Fund, are now 100-percent owners of East Point Holdings Group from Cyprus, which has so far been owned by Serbian businessman Zoran Drakulic.

East Point Holdings Group has a majority and controlling stake in several companies in Serbia: Sevojno Copper Mill, Novi Sad's Cable Factory and Belgrade's leading bread producers Klas, Beogradska Pekarska Industrija (Belgrade Baking Industry) and Zitomlin.

East Point said in a press release on Tuesday that RC2 had become the owner of 63 percent of shares, while Darby had acquired a 37-percent stake in the group.

The two funds made their first investments in East Point Group in the period 2006-2009, and it was not until recently that they purchased the shares from the original owners.

- We came to Serbia and made the first investments in East Point Group in 2009 and took on long-term obligations since we believed we could bring new knowledge to make room for changes within companies and yield good business results - Director and member of the RC2 Management Board Ion Florescu stated in a comment on the takeover of East Point Holdings Group.