(Bloomberg) -- Fortenova Grupa d.d. shortlisted bidders for its agricultural businesses as the largest retailer in the Balkans seeks to raise funds and reduce debt to finance its expansion, according to people familiar with the sale process.

Croatian food producer and drugmaker Podravka Prehrambena Industrija d.d., and two other unidentified bidders remained in competition, said the people, who asked not to be named because the information isn’t yet public. Fortenova, in a statement on Thursday, confirmed that it has narrowed the field of bidders, without naming them. Podravka’s press office declined to comment when contacted by Bloomberg.

“We are happy to enter the due diligence phase with several exceptionally strong potential partners,” the group’s chief executive officer Fabris Perusko said in the statement. Fortenova will assess the binding offers not only on price but also in respect of how the buyer will propose to be a strategic partner for the group, it said. 

Fortenova, a holding of food and retail businesses and the largest private employer in the former Yugoslav region, concluded a state-led restructuring in 2018. The Zagreb-based company in January called for interest for the potential sale of its agricultural units in order to reduce debt and continue with investment in its core area, such as retail and food production. 

Read more: Fortenova Owners Buy Out Firm to End Russian Banks’ Stake (1)

The agricultural division includes Belje, PIK Vinkovci, and Vupik, comprising of meat and dairy production facilities, animal and dairy farms, wineries and wine cellars, and arable land. 

©2024 Bloomberg L.P.