Slovenian "Mercator" became owner of 74% of assets of company "Rodić MB", remaining 24% to be taken over prior to end of 2009 - transaction worth about 150m EUR

Holding "Rodić MB" and Slovenian company "Mercator", after negotiations that lasted for several months, signed the agreement on strategic merging in field of trade, which will be used by the former for strengthening of position of its production brands, such as MB beer, whereas the latter will become the leading company for trade in food products in southeast Europe.

By this contract, signed yesterday (July 5, 2006) in Kula, where the headquarters of company "Rodić" is settled, Ljubljana-based "Mercator" became the owner of 76% of newly formed company "M-Rodić", which took over activity – property and trademark, retail sale and wholesale of the holding.

Slovenians will buy remaining 24% in the following three years – half in 2008 and the remaining 12% in 2009.

According to the current contract, the price of transaction, which should be realized prior to October 31, 2006, amounts to 150m EUR, whereas the final amount will be known at the end of 2009, depending on the business results and it will range between 135 and 175m EUR. The contract regulates that the buyer will pay for the trading part of holding "Rodić MB" partly with its own stocks, partly with the takeover of obligations of the seller and partly in cash.

When brothers Milan and Bogdan Rodić obtain stocks of "Mercator", they will become the biggest stockholders of that Slovenian company with 5% of stocks at the moment. That percentage will be much bigger at the end of the realization of the entire sales contract.