The Ukrainian Times
May 27, 2008 Tuesday
EBRD BUYS EQUITY STAKE IN ARMENIAN MEAT PRODUCER
The European Bank for Reconstruction and Development (EBRD) is
acquiring a 28.3% 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
companys 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 companys 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 Banks 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 Banks expertise and know-how in our country and
region.
To-date, the EBRD has invested more than 170 million euros 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.
According to the latest forecasts by Vahram Ghushchyan of the Armenian
Ministry of Economy, foreign trade will increase by 42% this year and
gross investments/GDP by 26.1%. He stated that Armenia would introduce
e-governance with the aim of having one window entrance for investors
for a term of five years and with 50% of services to be rendered
online. However, skeptics who took part in the country update and
networking session within the EBRD Business Forum in Kiev noted that
Armenian panelists presented rosy prospects and numbers.