Polish honey maker M Food said that it intends to acquire an 85% stake in peer JGV Bulgaria by increasing the Bulgarian company’s capital by 940,000 levs ($538,000/481,000 euro).
After wrapping up the capital increase, M Food is planning to acquire a further 5% stake from JGV Bulgaria’s current owner for up to 60,000 levs, the Polish company said in a statement on Friday.
JGV Bulgaria currently has a registered capital of 160,000 levs, and is fully owned by local private investor Vladimir Rusev, according to commercial register data. In September 2018, Vladimir Rusev acquired the remaining 90% stake in JGV Bulgaria from another private individual – Vladislav Angelov.
In October last year, M-Food said that its supervisory board has mandated the company’s management board to start negotiations for the acquisition of a majority stake in JGV Bulgaria.
According to its most recent annual financial statement, JGV Bulgaria pocketed a net profit of 718,000 levs in 2017, on revenue of 10.7 million levs.