Stapled insurance and pre-completion price adjustments have helped close the first significant cross-border deal within the former Yugoslavia.
Slovenian holding company Istrabenz sold subsidiary Droga Kolinska as part of its debt restructuring plan. The €500 million plan emerged from compulsory settlement proceedings started by Istrabenz last year after becoming overleveraged.
The competitive sale of the food and beverage business was won by Croatian consumer company Atlantic Grupa for €382 million. Not only did the buyer have to outbid leading CEE private equity funds, it had to maneuver within strict parameters set in the sale and purchase agreement (SPA) by the creditor banks.
“There were a fair amount of restrictions coming from the banks as to how we could structure the deal, both from a price perspective and the residual liability Istrabenz as a seller could have,” said Rob Irving from White & Case who acted for the seller.
The...