Race on to bag Knjaz Milos
attracted considerable attention from a succession of foreign
companies, with France's Group Danone, Cayman Islands registered
FPP Balkan, Hungarian-based Jaminca - part of the Agrokor group -
and Slovenian beer producer Lasko all currently in the bidding.
Offers for the company, which was privatised in 2001, are being considered by the Serbian Securities and Exchange Commission, which has so far approved the Danone bid. The other offers must be approved by the Commission no later than 19 September if they are to be considered as serious contendors.
With sales of around €70 million in 2003, Knjaz Milos is currently the market leader for bottled water in Serbia thanks to strong brands such as Knjaz Milos and Aqua Viva. The company has also developed a firm export market for its products to countries such as Sweden, Hungary, Canada, Germany, Russia, Australia and Switzerland.
Offers for the company are understood to have been made in the region of between CSD9,000 (€120) and CSD10,000 per share for as many as 350,000 shares, a sum that many industry observers say reflects a growing confidence in the Serbian economy by investors.
Serbia suffered greatly during the war in former Yugoslavia and major investors have tended to shy away from firm commitments there, until now.
Further investment in the company is expected to enable it to increase its market share both at home and abroad and could also allow it to extend its product lines. As well as mineral water, the company also produces ACR Vitalis and Guarana brands of soft drink, together with a line of carbonated coffee and tea.
