Sept 05, 2007 - Istrabenz has sold 12.56 per cent of the country's largest food retailer Mercator to the Slovenian financial company Infond Holding for 174.7 million euro (USD239 million), an Istrabenz company spokesman announced on Wednesday.
Igor Bavcar, CEO of Istrabenz, said the energy-to-tourism holding company was selling a large part of its share in Mercator because “a favourable offer” had been received. He also said the company planned to concentrate more on its gas and electricity operations in south eastern Europe. Mr Bavcar did not say whether Istrabenz had sold all its Mercator holdings.
The move prompted Mercator’s shares to fall in value by almost six per cent on Tuesday and Wednesday, making it the biggest loser of the 10 blue chip companies on the Ljubljana Stock Exchange over the period. Uncertainties over Istrabenz’s off-loading of the company were said by brokers to be the cause of the drop.
This is not the first time Mercator has been in the news this year. As reported by FLEXNEWS in July, it called off a proposed strategic partnership with Serbia’s top food producer Swisslion-Takovo.