Požega, May 21st 2007 - President of the Management Board and the owner of the Croatian trade company Presoflex, Mr. Josip Galic, president of Mercator's Management Board, Mr. Žiga Debeljak, and director of Mercator's Croatian trade company Mercator-H, d.o.o., Mr. Alan Krickovic, signed today the agreement on a strategic alliance between the companies Presoflex, d.o.o., and the company Mercator-H, d.o.o.
The company Presoflex, d.o.o., with over 40 trade facilities and a well established trademark, is one of the leading trade companies with alimentary and similar products (fast moving consumer goods) in Croatian market, and a leading retailer in the Slavonija region. After the establishment of the strategic alliance, Mercator intends to retain the trademark 'Presoflex' and continue with its development in the Croatian market.
Based on the agreed partnership, Mercator will become 100 % owner of the company Presoflex, d.o.o., thus reinforcing its market position in Croatia. Planned revenues of the company Presoflex in 2007 exceed EUR 80 million; thus, the alliance will increase Mercator's market share in Croatia to approximately 6 %.
The agreement on strategic alliance also includes long-term business cooperation in the field of development and construction of new trade facilities in Croatia; simultaneously, Mercator will pay for a part of the purchase price by shares of the company Poslovni sistem Mercator, d.d., which means that Mr. Josip Galić will enter Mercator's ownership composition.
Establishment of the strategic alliance between the companies Presoflex and Mercator is consistent with Mercator's planned strategy of growth and gradual attaining of the position of the leading retailer with alimentary and similar goods (fast moving consumer goods) in the Southeastern European Region.
Enclosed with the public announcement is the fairness opinion on transaction and terms of disposal of minority package of shares of the company Mercator, d.d.