The Slovenia Times

Steel group SIJ completes acquisition of 46% of poultry firm


The Slovenian-based SIJ said the transaction was carried out after the group obtained all regulatory approvals.

For the steel group, which is in majority ownership of the Zubitsky family from Russia through the Dilon holding, the investment is part of strategic diversification announced earlier this year.

The group now has 30 days to publish an offer to purchase the remaining shares in the Ptuj-based company.

SIJ said the move was part of its effort to expand its operations using the windfall from one of the best operating profit margins among steel groups in the world.

The purchase of Perutnina Ptuj is an important long-term investment, SIJ said already in July, as it responded to the call for a capital injection of at least EUR 20m demanded by the creditors of the meat processor.

While the investment has been welcomed by the Perutnina Ptuj management, it has raised scepticism in some circles, especially among small shareholders of the poultry group.

They had favoured a rival bid by Ukrainian food company MHP, which was deemed inferior by the Perutnina Ptuj board chaired by Roman Glaser.

The small shareholders have claimed that the SIJ bid would only help Glaser save his investment in Perutnina Ptuj after a failed management buyout.

Glaser and the Small Shareholders Association are pursuing legal action against each other in relation to the acquisition.

SIJ for its part rejected in today's statements concerns that the steel group was transforming into a financial holding with the acquisition, announcing that the Ptuj-based company would be incorporated into a new subsidiary which would control assets from the diversification plan.

The acquisition was meanwhile welcomed by Glaser, who said it would provide Perutnina Ptuj with the required money for development.

Perutnina Ptuj generated EUR 257m in revenue in 2014, with an operating profit of EUR 14.3m.


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