Pursuant to the Capital Market Law and the Zagreb Stock Exchange Rules, we hereby inform that, continuing the restructuring process with the purpose of increasing business efficiency, a Resolution has been passed on starting the merger procedure for the limited liabilities companies as subsidiaries of Podravka Inc.: ITAL-ICE d.o.o. - headquartered in Poreč and LERO d.o.o. –  headquartered in Rijeka.

Podravka Inc. as the only member – holder of 100% share in the stated companies which are to be merged, is performing the simplified merger procedure in the manner that the overall assets of the merged companies are being transferred to Podravka Inc. as the company that is taking over them, without implementing the liquidation process, without the possibility of exchange for shares and without increasing Podravka Inc. share capital as the company that is taking over.