Negotiations with Potential Investors on Shareholding in Azerbaijanїs Fruit Corporation Underway

Business Materials 13 September 2008 19:54 (UTC +04:00)

Azerbaijan, Baku, 13 September / Trend corr. I.Khalilova/ Delays in establishment of Azeri Fruit, Co in Azerbaijan do not impede the negotiations with portfolio investors interested in the project, Azerbaijan Investment Corporationїs Chief Executive Anar Akhundov said.

їEstablishment of the fruit corporation goes on at a slow pace because that is a quite new project for Azerbaijan, but we are simultaneously negotiating with investors. We cannot ignore the technical side, so many things depend on fruit corporationїs stockholders,ї said Akhundov.

According to Akhundov, juice manufacturers have first of all to determine the shareholders and the amount of the stocks. The former list of shareholders, including two companies ї SAF and Garnet (a part of MilkPro), has been preserved.

AZPROMO is responsible for organization of Azeri Fruit, Co and is a side in the trilateral memorandum on establishment of the fruit corporation. Azerbaijan Investment Company (AIC) and Azerbaijan Export and Investment Promotion Foundation (AZPROMO) signed a trilateral MOI on 1 July with Azerbaijanїs juice manufacturers SAF and MPro to establish a Fruit Corporation. According to the MOI, AIC will draw in extra funds from international fiscal institutions, including strategic and portfolio investors, for financing of the project. International Financial Corporation (IFC) has already got interested in participation in the fruit corporation.

Cost of the project is contingent on the volume of assets which will be given to Azeri Fruit, Co juice manufacturers.

SAF and Garnet will be the key stockholders of the corporation, though the list may be expanded in future. AICїs shareholding in the Corporation will not exceed 25%.

Corporation will represent local juice manufacturers in the foreign markets, as well as help in producing the product that will meet the international standards under one brand.

Establishment of Fruit Corporation in Azerbaijan is intended to unify the efforts of juice and vegetable manufacturers.

On 13 September, official exchange rate totalled 0.8155 AZN/USD

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