York Capital Management and Elements Capital Partners provide offer for Victoria Group - Agreement underway until December 4?

York Capital Management i Elements Capital Partners delivered mutual bid for share acquisition at Victoria group to invest in agricultural sector in Serbia.

As PR representatives at York Capital Management say, after detailed consideration of Victoria Group, its resources and potential, investors decided to invest 100 million euros in order to ‘’stabilize the business of this company and go a step further in the growth and development of its work and business’’.

- For some time we have been discussing with all key shareholders of Victoria Group and we want to support them and cooperate with them to stabilize and develop existing business and new income flows – the consortium says for eKapija.

When asked if they are familiar with finance aspect of Victoria group, they confirm and add that negotiations with key creditors and trustees have been in significant stage as well as that they ‘’are ready to take over payment of commitments of depending on negotiation outcome’’.

Apart from that, the investors are planning to increase capital and thus maintain 1.700 vacancies and open the option to hires additional 500 employees as well as to keep 4.000 farmers who depend on Victoria group.

The consortium’s business plan foresees business growth and substantial exports which will secure existing jobs and allow further recruitment to be made across Serbia.

-A strong international investment and strategic partnership, provided by the consortium, ensures that Victoria Group and Serbia becomes a strong global agribusiness hub- they state and add that ‘’Group and its subsidiaries will have, with quality investments, firm road towards future growth’’.

As the consortium says, they are planning to deploy a portion of capital in new technology development, including modern food processing facilities and animal husbandry to boost local agricultural exports by increasing production which includes Sojaprotein, SP Laboratories and the Subotica Veterinary Institute.

The investors intend to refinance Victoria Group and support a growth strategy, while bringing in external experts to join the current leadership team and build an international agribusiness group headquartered in Serbia.

Agreement by December 4?

Investors are planning to finish contract signing by December 4 latest.

This would be the first investment in Serbia of this consortium which, for some time, has been monitoring development of agribusiness in the country and is now planning to make a safe and long-term investment. This, they add, "shows the consortium's confidence in economic climate and the agricultural development policy implemented by Serbia."

Founded in 1991,York Capital Management is a global institutional investment management firm based in New York with European headquarters in London. In 2016, it reported USD 21.7 BN in assets under management and is among the top 20 largest hedge funds in the world.

Elements Capital Partners is a boutique investment firm specialising in private equity opportunities throughout SE Europe and was established in 2010.

Approximately EUR 300 MN has been invested in the region by York Capital Management to date and the fund comprises Slovenian Delo prodaja, Terme Čatež and Publishing company DSZ, as well as investments in Romania.

They do not have comment on the interest of MK group.

Information has recently showed up stating that Serbian MK group is also interested in Victoria group, and York Capital Management i Elements Capital Partners consortium says " We cannot comment on market rumor and speculation about the interest of other parties in acquiring Victoria Group".

Victoria grupa also does not want to comment.

At the same time, Victoria group repeated for eKapija their view after the first information on potential sales.

- As one of the largest agro-industrial companies in Serbia, Victoria Group continuously receives and reviews options for strategic partnerships, joint ventures, mergers and acquisitions of our business system or business entities within it. At this point, we cannot comment on further plans and talks with potential partners - they said in the company.