The FINANCIAL, Georgia
May 18 2008

EBRD buys equity stake in Armenian meat producer

18/05/2008 17:32

The FINANCIAL — Kiev . The EBRD is acquiring a 28.3 percent-stake in
the Armenian meat producer NatFood CJSC for $4 million. The funds will
be used for expanding business by building new production facilities
with state-of-the-art equipment in compliance with international
quality standards.

The Armenian market for processed meat is growing rapidly and the
company’s strategy is to become a leading player. The emergence of a
middle class who can afford and ask for products of better and safer
quality is seen as a special opportunity. The company’s products, sold
under the `Biella’ brand name, already enjoy high reputation on the
local market.

NatFood was established as a spin-off of the meat processing business
of Valletta LLC. Valletta was founded in 1999 as a trading group by
the local entrepreneur Henrik Zakharyants, who was previously the sole
owner. It has since grown into a wide-ranging business group,
including wholesale, retail and food processing.

EBRD First Vice President Varel Freeman said the Bank’s acquisition of
an equity stake showed `our confidence in our new partner. We have
been very impressed by the strong performance of the company over the
past years and we will now support its further development and
strengthening.’

Armen Khudinyan, CEO of NatFood, added: `Having the EBRD on board – in
the truest sense of the word – is a massive boost for our
enterprise. It does not only strengthen us financially but we will
also benefit from the Bank’s expertise and know-how in our country and
region.’

To-date, the EBRD has invested more than ?¬170 million in 50
projects in all sectors of the Armenian economy. The strong growth in
recent years has also resulted in higher demand for EBRD finance.