Don Don becomes majority owner of Nis-based Zitopek

The Don Don company has become the owner of 51 percent of shares in Nis-based Zitopek and is now in the process of taking over that company whose losses currently exceed the amount of the bakery's capital totaling about RSD 170 million, it was announced at a press conference on Wednesday.

Don Don's majority owner Ales Mozetic said that the value of complete transaction would come close to EUR 4.5 million, adding that that would cover suppliers' losses of EUR 2.6 million, EUR 1.5 million investment in the factory modernization, and the payout of about EUR 250,000 worth of shares.

Mozetic announced that a takeover bid for Zitopek would be soon made to remaining shareholders.

Zitopek, which was founded back in 1947, currently employs 360 workers. Once modernized, its factory should have between 250 and 300 employees.

The new majority owner has a plan for Zitopek to increase its current daily production capacity from 42,000 to 80,000 loaves of bread.

Don Don operates for as many as 20 years now. So far, the company has invested EUR 30 million in the development of the baking industry in Serbia, and it now has plans to invest another EUR 20 million and hire another about 500 workers over the next two years.

Don Don currently employs about 1,000 workers and produces around 250,000 loaves of bread a day, and it is best known on the market for its brands "Nase zrno" and "Tvojih pet minuta".