Zagreb, December 27, 2005 – The Viro Sugar factory is the first joint-stock company in Croatia to issue stocks by public bid through the trading system of the Zagreb stock-exchange and the issue agent will be Croatian Post Bank. In the procedure of the public bid a minimum 346,667 stocks are issued, which represents a proportion of 25% at a price of 365 kunas per stock.
The successful completion, over a period of 40 days, of the public bid procedure and the issue of stocks will fulfil the conditions for the stock listing of VIRO Sugar factory d.d. in the official market of the Zagreb exchange (first quotation), which will provide full transparency of business operations and diversification of ownership. A part of the issue will be subscribed and paid by the employees and sub-contractors of the sugar factory, for whom the owners of the factory have provided special credit lines with the business banks.
The decision to increase the share capital and issue stocks by a public bid has been made to assure additional assets for possible acquisition in the department and to complete the planned investment in increasing the range of finished products for sale on the markets of Croatia and the European Union. The Viro sugar factory has already begun with investments in the production of liquid sugar which will meet the requirements of domestic non-alcoholic drinks producers, while 1 kg packing and sugar in cube will be produced for the EU market. The sugar factory will also introduce the HACCP certificate for the additional recognition of the quality of its products.
The Viro sugar factory is one the largest exporters and most profitable food companies. This year the factory has achieved a record in production of 110,000 tonnes sugar, and the expected profit for 2005 amounts to 80 million kunas. Thanks to its excellent operating results, Viro has already been awarded for two years running the Golden Kuna for the best large-sized company in the county of Virovitica-Podravina.
130 million kunas have been invested so far in modernization of the factory, and with its wastewater purifier Viro is the only sugar factory which has solved the issues of ecological soundness. Besides investment in new equipment, Viro also invests in its sub-contractors, providing them with financial aid and free professional consulting related to the growing of sugar beet. Viro pays its employees an average net salary of 4,800 kunas, and 14 salary payments are made per year. |
