(Miodrag Kostić)
- MK Group plans to expand to Russian market through acquisition of five agricultural companies. The money will be provided through additional capitalization of 25% of ownership of MK Agrar, one of three companies from MK Group's agribusiness sector - Miodrag Kostić, the President of MK Group, said in the interview for eKapija on the first night of the Business Forum on Kopaonik.
- We are currently negotiating with five companies that are interested in taking over a share in MK Group. We need between 100 and 200m EUR to expand our business to Russian market, and we plan to have the share of 75% in future companies, while the rest will be in the possession of strategic partners. The first appraisals of these companies are already being done, and we plan to go to Russia in late March and visit the companies that we are interested in - said Kostić.
He said that the companies that wanted to buy a share in MK Agrar were mainly finance institutions, investment funds, while all potential partners were from London.
- They heard about us when we were getting ready in 2008 for IPO on the London Stock Exchange. Ever since, we have received number of enquiries for strategic partnership. At the moment when we were ready to offer our stocks, the market collapsed and the global economic crisis started. We were very satisfied with the estimate of value of our stocks. Due to unsuccessful initial public offering, we lost about 2.5m EUR, but the good side is that we entered the global stage, so that every investment bank and investment fund has us in its files.
Kostić said that the crisis also disturbed the plans for entrance to the market of Belarus.
- All documents for Belarus are now on hold, but, at this moment, we find Russia more important than Belarus because larger market is more significant, more transparent, the system is better organized, banks still grant loans - Kostić explained.
When it comes to plans for the market of Ukraine, he said that MK Group has, so far, invested about 130m EUR in that market. All loans are repaid, expect for the one approved by EBRD.
- We don't plan to expand for the time being, interests are pretty high and we will wait for some more favorable moment.
Sunoko
Just like it was announced earlier by the media, Nordzucker plans to sell four sugar factories in Serbia, while MK Group has the right to priority in purchase of Sunoko, which is jointly owned by MK Group (49%) and Nordzucker (51%).
- We plan to take over the majority package of stocks and that will happen in few months - said Kostić, but he did not want to reveal the amount of investment.
– It is a business secret, and we will be helped by financial advisers who participate in the acquisition. As a matter of fact, everything's already done, but I can not give you any details.
T.S.
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