Merkur Undergoes Changes

Naklo, 23 June 2010 - Today, on 23 June 2010, the 21^st annual general meeting of Merkur was held. All Merkur shareholders were present at the meeting. Current members of the Supervisory Board offered their resignation. Shareholders at the AGM unanimously appointed new members to the Supervisory Board of Merkur. The shareholders’ representatives of the new Supervisory Board are the Head of Risk Management Department of Gorenjska banka, Mr Matevž Slapničar, who acts as the Chairman of the Supervisory Board, and the Director of Strategic Controlling of Sava, d. d., Ms Antonija Pirc. The employees of Merkur are represented by Ms Ana Hochkraut, the Director of Worker’s Council. Immediately after the end of the AGM, the new Supervisory Board held their first session and appointed Mr Bojan Knuplež, the current director of Big Bang Division, as Chairman of the Management Board of Merkur. Mr Knuplež will assume the new function on 1 July 2010.

The owners and management of Merkur reached the consensus with creditor banks and major business partners concerning Merkur business operations in the future. The best option is to maintain Merkur Group undivided. Basic problems of the Group are scant liquid funds and consequently lack of deliveries. Merkur Group’s sales have dropped by 30 % in comparison to the best years, but Big Bang Division has performed well. However, if positive marketing trends are considered and adequate funds obtained, Merkur and Mersteel Divisions will promptly re-assume successful growth. A detailed plan of measures to ensure Merkur a fresh start will be drawn within few weeks. According to the plan, Merkur will shortly re-assume its position as the market leader in non-food products in Slovenia.

Immediately after the end of the AGM, the newly composed Supervisory Board held its first meeting. The members agreed that the managerial team of Merkur had to change, if measures were to be successful. Current Management Board of Merkur, owners, and banks agreed to appoint the present-day director of Big Bang Division, Mr Bojan Knuplež, as the Chairman of the new Management Board of Merkur. Mr Knuplež will assume the new function on 1 July 2010. In few weeks, a plan of financial reconstruction will be drawn. The basic objective is to stabilize Merkur Group companies and re-assume growth. Current Chairman of the Management Board of Merkur, Mr Bine Kordež, will be assigned to a new job in Merkur.

The Annual General Meeting today also passed amendments to the Articles of Association of Merkur.  In the future, the Supervisory Board will include six members. Four Supervisory Board members will be appointed by the shareholders, and two by the Workers’ Council. According to the amendments of the Articles of Association, the company will be presented by the Chairman of the Management Board, while two Management Board members together, or one Management Board member and the procurator will act as its legal representatives.

In principle, the owners and the banks intend to support Merkur and maintain it complete. The companies Merfin and Mercator therefore agreed to terminate already today all activities aiming at strategic integration of Merkur Division into Mercator system. The strategic connection between Merkur Division and Mercator outlined in the letter of intent would now not be feasible.  

Merkur, d. d.