Croatia's Agrokor concern, which on Monday submitted a non-binding bid for the purchase of more than half of Slovenian retailer Mercator, intends to finance the operation in a consortium with the European Bank for Reconstruction and Development, the International Finance Corporation, and JP Morgan One Equity Partners, Slovenia's Finance business paper said on Thursday.
Agrokor's bid to finance the purchase as part of a consortium is a move that has surprised the Slovenian critics of the sale to the Croatian "competitor", Finance said. The bid envisages that the bulk of the EUR 832 million, which is how much the Mercator takeover is expected to cost, would include cash and only a small amount would include loans.
One of the main criticisms of Agrokor in Slovenia is that it might transfer onto Mercator the high costs of short term bank loans Agrokor would take to buy Mercator, which would "financially exhaust" the Slovenian retailer.
Nova Ljubljanska Banka said on Wednesday three investment funds and one strategic investor had made bids on Mercator, without naming them or the price offered per share, adding that the consortium of Mercator's Slovenian owners would decide on the next steps after their consultant, London's ING bank, held talks with all the bidders.
The media have reported unofficially that the non-binding offers have been made by the Mid Europa, Warburg Pincus and TPG investment funds and Agrokor, which has offered EUR 221 per share.
Agrokor would not comment on the information about its bid, saying the process was still under way.
Delo daily said that, according to unofficial information, the differences between the bids were "huge" and that the owners were disappointed the offers were so few.
