Frikom

completed

Agrokor is the leading food producer and retailer inCEE region. Agrokor’s Serbian subsidiary, Frikom, which was acquired by Agrokor in 2003 through a privatization program, is engaged in vegetables farming, ice-cream, frozen vegetables and pastry manufacturing, packaging and distribution. In 2008 Frikom acquired Nova Sloga in Trstenik, central Serbia through a privatization deal, for its potential in fruit and vegetables packaging and its mineral water source. Nova Sloga was established in 1953, changed its ownership structure in 1998 to a Public Enterprise (Srbijasume); and, in 2008 was privatized by Agrokor and is considered to be the most successful privatization in Serbia. Nova Sloga owns exclusive rights to the ground water source of the Veluca aquifer with a high mineral content sold under the brand name Mivela. Nova Sloga’s existing bottling line was relocated to Trstenik from Agrokor’s Kiseljak mineral water plant near Sarajevo. IFC will finance a corporate investment to Frikom and its subsidiary Nova Sloga. Frikom is contemplating a €40 million project for 2009 that is aimed at the following elements: refinance Frikom’s short term with long term debt; refinance Nova Sloga’s acquisition cost to Agrokor; purchase new combines (harvesters) for vegetable production; purchase a new frozen vegetables production line and ice-cream machine, and construct and equip new cold storage facilities at Frikom. The project will include Nova Sloga’s new cold storage; a new packaging line; water bottling plant and equipment including PET bottle manufacturing and glass/PET filling lines; and refrigeration and transportation.