The concern is in intensive preparations for an Initial Public Offering (IPO) to tak place in the London Stock Exchange in the summer of 2017, Slovenian daily Finance writes
The paper says Ivica Todorić plans to sell a minority share to only one investor. Also, it has not been decided if the entire concern will be part of the IPO or just its food sector, as reported by Tportal.hr on June 24, 2016. The decision will depend on the market situation and desirability of the investor. In both cases Todorić is willing to give up 49 percent of stock.
The food sector of Agrokor is made up of companies Agrolaguna, Dijamant, Fricom, Jamnica, Ledo, Mladina, PIK Vrbovec, PIK Vinkovci, Sarajevo Kiseljak, Solana Pag, Vupik and Zvijezda.
Finance daily also writes they aroused interest in investors from the US, Middle and Far East and especially from China. An IPO of the entire Agrokor is less likely as the consolidation of the trade sector, namely Mercator and Konzum, has not been completed.
The Agrokor IPO has been talked about for the last five years since Ivica Todorić was in intense efforts to overtake Mercator. He finally succeeded in June 2014, while the takeover was half a billion Euro heavy.
To complete the transaction Todorić borrowed money through the so-called PIK Toggle bonds through which over 90 percent of Agrokor property was mortgaged. The bonds are due in 2018. Conditions of issue are unknown, as are investors who bought them, while the only known name is Deutsche Bank, the arranger of the issuance.
But it is clear Ivica Todorić must make the public offer soon so he will be able to pay back this very risky debt.
