The Cyprus-based KappaStar Group, an investment company owned by Serbian businessman Nebojsa Saranovic, has bought shares of Croatia's Kras confectioner in recent days and now holds a stake of more than five percent, the Zagreb-headquartered company said in a press release issued on the Zagreb Stock Exchange on Wednesday.

“We have been notified by the shareholder KappaStar Limited that it crossed a threshold of five percent (5%) of voting rights on Monday, 16 September,” Kras says.

Investors’ focus has been on Kras since the start of last week, when the Braca Pivac meat industry announced its plan to take over the Zagreb-based sweets manufacturer.

Data provided by the Central Depository and Clearing Company (SKDD) on the top ten share owners in Kras have indicated changes and media have recently speculated about “the shadow buyer”, expecting official information on the buyer’s identity once it crossed the five-percent threshold.

The Zagreb-based Jutarnji List daily on Wednesday morning reported that the shadow buyer could be KappaStar Limited, owned by businessman Saranovic. The group is best known for its Jaffa cakes and consists of five companies: Umka Cardboard Mill – Belgrade, Jaffa Biscuit Factory – Crvenka, Paper Service FHB – Belgrade, Ekostar Pak – Belgrade, Banini Biscuit and Cookie Factory – Kikinda.

The biggest individual share-owner in Kras is the Braca Pivac meat industry, with a 30.73% interest, and the second biggest shareholder is the Kras ESOP (Employee Stock Ownership Plan), with 18.45%.

On 9 September the Braca Pivac meat processing company announced its plan to take over Kras’ shares and said that it had opened negotiations with the Kras-ESOP with the aim of jointly taking over Kras.

It remains to be seen whether the latest changes in the ownership structure could impact the offer for the takeover of Kras which the Pivac company is expected to publish officially.