BGZ stake in Hortex may soon be ripe for the picking
Bank Gospodarki Zywnosciowej (BGZ) will decide in a few days whether to
sell its 29.49% stake in juice producer Hortex. Other partners, Bank
Handlowy, Bank of America and the European Bank for Reconstruction and
Development (EBRD), are awaiting the decision of BGZ. Bank Handlowy, which
holds a 16.27% stake in Hortex, has already offered to buy the stake and
hopes BGZ will finally accept its offer. "We explained many times to BGZ
officials that either they sell us their stake or vice-versa. We are
unable to manage Hortex together," said a Bank Handlowy employee. Bank of
America and EBRD each own a 22.92% stake in Hortex which they plan to
increase. If Bank Handlowy and Bank of America takeover the shares, then
they would control 68.7% of Hortex enabling them finally to begin
restructuring. Hortex recorded zl. 42.4 million in losses last year
whereas in 1998 the company had profits of over zl. 25 million. (Puls
Biznesu, page 1, 3)
