Sale of 50% stake in Maxi market chain in early March

(Jelena Krstovic)

Delta Holding Director General Jelena Krstovic stated that an agreement on sale of a 50% stake in Delta Maxi market chain would most probably be concluded within next 30 days.

- The key parameters of the agreement have been defined and the transaction will most probably be concluded within next 30 days - she said in an interview for Bloomberg agency, but did not want to comment on the announcements by the media that the most probable buyer was Belgian Delhaize.

Ms. Krstovi said that Delta Holding had registered a 10% growth and increased the annual revenue to EUR 2.7 billion in 2010, backed by the growth of retail business, including Maxi markets and Tempo hypermarkets.

- Delta, which will celebrate its 20th birthday on February 4, is going to invest EUR 140 million, including EUR 30 million for turning Continental hotel in Belgrade into a four-star hotel, which will become part of InterContinental group and Crowne Plaza hotel chain - said Ms. Krstovic.

As she added, the next 90 million euros in 2011 will be intended for two shopping malls, one in Banja Luka and the other in Belgrade, while 20 million euros will be invested in expansion of orchards and construction of greenhouses with the aim of helping the growth of food distribution in Serbia, Russia and other markets prior to 2012.

Ms. Krstovic also said that Delta might invest over 400 million euros in shopping malls prior to 2014 and added that the company would ask commercial banks for the funds required for expansion.

- Over the next five years, Delta plans to have six shopping malls built, two of which in Belgrade and one in Nis, Novi Sad, Sarajevo, and Banja Luka - Ms. Krstovic said for Bloomberg (www.bloomberg.com).

The company also plans to sell a 50% stake in Delta Maxi market chain to a strategic partner in order to reduce the need for loans.

- Delta has no problem with financing for the years 2012 and 2013 when investments will be available, but it must provide funds for financing in 2011 when the access to capital is still limited - said Ms. Krstovic who is also the Corporate Communications Director at Delta.