CZ/SK verze

CSG expands on the Croatian market, bought shares of Đuro Đaković, traditional manufacturer with a famous history

CSG expands on the Croatian market, bought shares of Đuro Đaković, traditional manufacturer with a famous history
photo:Đuro Đaković
26 / 11 / 2020

The Czechoslovak Group (CSG) is expanding into the Croatian market through DD Acquisition. The company, founded by Jaroslav Strnad and René Matera, bought 1,916,724 shares in Đuro Đaković from Nenad and Rujana Bakić. As a result, DD Acquisition received 18.9% of the company's share capital and the same percentage of votes.

Mr and Mrs Bakić sold all their shares in Đuro Đaković to DD Acquisition, which was co-founded by Jaroslav Strnad and René Matera. This was the largest amount of the company's shares in the hands of a private owner. Thus, DD Acquisition acquired 18.9% of shares in the Đuro Đaković with a total nominal value of HRK 38,334,480. The second largest shareholder is the Croatian State Headquarters for Restructuring and Sale of CERP. It owns 13% of the shares.

Đuro Đaković manufactures wagons, armored vehicles and equipment for the petrochemical and energy industries in Slavnoski Brod in eastern Croatia. She has been struggling with financial problems for a long time. At the same time, it still employed about twenty thousand people in the 1980s. However, there were waves of dismissals and employees also organized strikes. The state tried to prevent the company's bankruptcy by restructuring and sueing suitable investors.

Jaroslav Strnad and René Matera are long-term business partners. They do business together, for example, within the company of Tatra Kopřivnice, which manufactures trucks. Through the NIKA Development, the CSG holds 65% of the Tatra Trucks' shares. The remaining 35% of the shares are owned by the engineering and metallurgical holding the Promet Group René Matura. Now they have co-founded the DD Acquisition, which will operate on the Croatian market. Its goal is to save the Đuro Đaković factory, which, despite all the problems, achieves annual sales of over 2.5 billion crowns.

The whole transaction caused a great stir on the Zagreb Stock Exchange. Shares of Đuro Đaković have been low for a long time. Thanks to this transaction, their price went up and the number of trades also increased rapidly.

Nenad Bakić said about the transaction that he decided to sell his shares mainly due to the profile of the CSG, which can be a great hope for saving the factory. He has participated twice in the recapitalization of the company, once as a key shareholder. He saved the company two times and believed in its great potential. According to Nenad Bakić, the arrival of the CSG in the rescue company the Đuro Đaković is the best solution.

For the CSG, the Đuro Đaković is not the first factory in the region of the former Yugoslavia in which it invests. It already has one factory with a similar production focus in its portfolio. In 2017, the CSG acquired the Serbian factory of the IMK on October 14 through the Slovak MSM Group. Even this traditional Serbian company got into financial trouble, which culminated in bankruptcy. The CSG has just entered the process of rescuing it. Thus, an experienced and strong investor can be the right impulse for traditional production plants.