The withdrawal of EBRD from the ownership structure of Podravka

After 5 years since the equity investment of the ''European Bank for Reconstruction and Development (EBRD) in Podravka d.d. the two institutions are pleased to observe that the majority of the objectives underlying the EBRD's investment has been fulfilled. Consequently Podravka and EBRD agreed to bring to a conclusion the EBRD's investment through purchase of the EBRD preference shares which are expected to be withdrawn in order to eliminate existence of two different classes of shares.

After 5 years since the equity investment of the ‘‘European Bank for Reconstruction and Development (EBRD) in Podravka d.d. the two institutions are pleased to observe that the majority of the objectives underlying the EBRD’s investment has been fulfilled. Consequently Podravka and EBRD agreed to bring to a conclusion the EBRD’s investment through purchase of the EBRD preference shares which are expected to be withdrawn in order to eliminate existence of two different classes of shares.

In 1998. the EBRD subscribed for 636.000 preferred shares, the equivalent of 10.53% of Podravka’s share capital for the amount of 50.000.000,00 DEM. At that time this was considered as the most favourable type of financing available to the Croatian companies. The improvement of credit rating of both Croatia and Podravka has enabled the company to access the domestic and international capital markets and open the possibility for Podravka to explore now a different phase of its development in the region.