"Delta" to buy "Mercator" – Belgrade-based company to become owner of 25% of Slovenian market chain in May

(Miroslav Mišković)

"Delta" is not going to give up the business in Slovenia and the regional retail expansion plans. Negotiations with Boško Šrota, the Head of Pivovarna Laško, which owns 48% of “Mercator” through the company and the fund, are underway. The subject of the negotiations are the terms under which “Delta” would buy 25% of stocks of "Mercator" that Šrot currently owns (but can not manage them because of the legal limitations), because the participation in the ownership structure of that Slovenian market chain has become the business priority of the Serbian company, and it should be made possible prior to April or May 2009.

Continuation of the regional expansion does not require any new banking loans. According to the plan, "Delta" shoud use the model of additional capitalization to let one of the large US investment funds enter the ownership structure of its company. With that fresh capital (about 300m EUR), "Delta" would buy another market chain in one of the neighboring countries. The plan is that such enlarged "Delta’s" regional retail company be listed on the London Stock Exchange next year if it meets all criteria.

"Delta" will, most likely, “redesign the ambitions” for construction of business-sports center "Stožice" in Ljubljana. It is likely that the economic crisis has disturbed the plans of "Delta" because the global companies with famous brands have given up the rental of space in that center. Since the business circumstances have changed, "Delta" asks from the city of Ljubljana to lower the costs for "Stožice".

"If we fail to find the agreement, we are willing to leave the location to the city of Ljubljana”, people from the headquarters of the Belgrade-based company said for "Politika".

"Delta" already has the plan on how to reduce the costs. Based on the available information from that plan, the following things are not going to happen: introduction of 32-hour working week, dismissal of workers and lowering of salaries. The company will do its best to use the capital in the most rational way, as well as to reduce the costs for phones, official automobiles, etc.

The restructuring of operations anticipates not only rationalization of costs, but also investments in new projects and new employments. Namely, "Delta" plans to hire 5,000 new workers this year, half of whom in Serbia, while remaining 2,500 people will be employed in the regional daughter-companies. According to that plan, “Delta” will have 30,000 employees by the end of the year.

(Note: the complete text is taken from newspaper Politika of March 14th, 2009)

Delta Holding d.o.o. Beograd

Poslovni sistem Mercator d.d. Ljubljana

Mercator-S d.o.o Beograd

Pivovarna Laško d.d. Laško

London Stock Exchange / Londonska berza

Delta holding

Mercator

Boško Šrot

Pivovarna Laško

business sports center Stožice

London Stock Exchange