"Novi Sad Dairy” merged to “Imlek"

Manager of Corporate Affairs of "Danube Food Group", Rade Pribićević, said yesterday (January 15, 2008) that the Novi Sad Dairy had been merged to "Imlek". He said that that merger would contribute to more rational operations and savings in fields of procurement and distribution.

Pribićević said that the activities of those dairies were the same and that they had been cooperating before, so that the merger between the Novi Sad Dairy and “Imlek” was only logical consequence of those relations. In accordance with that merger, Belgrade Stock Exchange made the decision yesterday to exclude stocks of the Novi Sad Dairy from the market.

According to the Draft contract on merger, which was published earlier in the daily newspapers, the primary capital of "Imlek" will be increased by 481.59m RSD through issuing of 790,210 common stocks and 12,448 preferential stocks whose individual nominal value is 600 RSD. Commission for protection of competition estimated before that the two dairies already operated within the same system and that their merger can not have influence on the growth of concentration on the market.

"Danube Food Group" is owned by British "New World Value" fund, which is managed by company "Salford".

According to the words of Pribićević, the share of that group, through "Imlek" and Dairy "Subotica", amounts to 30 - 35% of the dairy market in Serbia. "Danube Food Group" also owns dairies in Zaječar, Subotica and Zemun, as well as confectionery company "Bambi-Banat". It is also the co-owner of Aranđelovac-based "Knjaz Miloš".