EBRD recapitalized Galeb Metal Pack - Bank became owner of 10% of Sabac-based metal packaging manufacturer

Galeb Metal Pack signed an agreement on recapitalization on Friday (October 1, 2010) with the European Bank for Reconstruction and Development (EBRD). Based on that agreement, the bank became the owner of 10% of the Sabac-based manufacturer of metal packaging.

The agreement on recapitalization is a part of a broader arrangement worth a total of 4 million euros, within which the remaining funds will be granted through a long-term loan. The funds will be spent on the construction of a new modern warehouse, the procurement of new equipment, the increase of working capital and refinancing.

Up to this year, GMP had been operating as an organizational unit of Galeb Group, but the company was separated from the group at the beginning of the year, in agreement with the EBRD, and became an independent juristic person.

GMP is the absolute leader in the region in the production of metal corks, saucers, cans and tin cans, as well as in the cutting and painting of sheet metal, and this arrangement will help the company exercise its ambitious plans for increasing the export to the Russian market and the market of the EU where it already exports its products.

According to the company's officials, it is already for certain that GMP will exceed the business plan for the current year.

Galeb Group's adviser in this transaction was consulting company Sinteza Advisory, a part of Sinteza Invest Group from Belgrade.