Adria Airways sale by mid-April

Thursday, February 25, 2016

The Slovenian Sovereign Holding (SSH) and government officials have fronted the parliamentary Public Finance Oversight Commission to defend their decision to sell a 91.6% stake in Adria Airways to the German turnaround fund 4K Invest, insisting the only alternative to the sale was bankruptcy. SSH chairman, Marko Jazbec, told the Commission that the cost of receivership will amount to 3.2 million euros, excluding severance, while the cost of closing the company would have been significantly higher. Explaining the sales process, Mr Jazbec said that over 120 potential investors were initially contacted. In response, five binding offers were submitted. Negotiations were launched with 4K Invest and the second highest bidder. 4K made the best offer and was the only fund willing to invest in the company. The deal has already received necessary regulatory approval but several suspensory conditions are still pending, Mr Jazbec said, adding that the 4.1 million euro recapitalisation will be carried out by mid-April. 4K Invest will participate in the capital injection by providing one million euros. The remainder of the funds will be secured by the state. The buyer will additionally pay a purchase price of 100.000 euros.