The Cyprus-based KappaStar Group, an investment company owned by Serbian businessman Nebojsa Saranovic, is continuing to increase its stake in Croatia's Kras confectioner, saying on Tuesday that it has passed the threshold of 10% and now owns 12.45% of Kras shares.

KappaStar reported that it now holds 186,653 shares in Kras or 12.455%.

KappaStar started buying into Kras on 9 September when the largest individual shareholder in Kras, the Braca Pivac meat industry, announced its intention to take over Kras.

Since then Saranovic’s KappaStar Ltd has actually bought the most shares and last week it reported that it had acquired more than 5% of voting rights in Kras and now it has crossed the 10% threshold.

Media, however, have reported that other investors appear to be interested in buying Kras shares as well. Data provided by the Central Depository and Clearing Company (SKDD) on the top ten share holders in Kras show that there are two other custodial accounts at Zagrebacka Banka, one with 1.89% of Kras shares and the other with 0.40% of shares.

Interest in Kras shares became obvious two weeks ago when the Braca Pivac meat industry, which has a 30.73% stake in Kras, announced that it would take over the confectioner.

On 9 September Braca Pivac 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.

Kras is known for its Employee Stock Ownership Plan or Kras ESOP, which holds 18.45% of the shares in the company. Kras ESOP will decide on the joint acquisition with Braca Pivac at its general assembly on September 30.