Janez Tomažič
Monika Weiss
Petra Sovdat

The goverment is selling several companies in need of recapitalisation, for which the buyers should be – paid

How much proceeds can be guaranteed for the state shares, promised to be sold by Alenka Bratušek?

Telekom Slovenije: 620 million EUR (73,82 % owned by the Republic of Slovenia, the companies Kad, Sod, Modra zavarovalnica)

Telekom is the best company in the package. Should the buyer pay 130 EUR per share (stock less than 100, acquisition premium should be taken into consideration), the proceeds would be at 620 million EUR. Telekom created a 793,1 million EUR profit in business income in 2012, which means 3,8 percent less than in 2011. EBITDA has reached 241,5 million EUR and has a 30,4 percent share in business income. The company marked a 43,5 million EUR of pure profit, that is a 28 percent or 9,5 million EUR increase in profit compared to the year before.

NKBM: 0 million EUR (80,00 % owned by the Republic of Slovenia)

The motion for recapitalisation of NKBM will be suggested today. Unofficially the bank is in need of 300.400 million EUR of new capital (approved capital). The company marked a 287 million EUR loss in the pas two years and it owns approximately one tenth of the market. Who will recapitalise it, it is not yet known. One country is being mentioned, however, that nationalised the bank by recent conversion of a loan CoCo into ownership, but this country is also foretelling the sell of NKBM. Putting it differently: will the potential buyer have to be paid and one cannot thus speak of actual proceeds, that the goverment (and with it the 97 thousand small shareholders) would obtain by selling the bank.

Adria Airways: 5 million EUR (69,87 % owned by the Republic of Slovenia)

In the previous year the airline created a 10,8 million EUR of pure loss, meaning 10,2 percent less than at the same time one year before (however still worse than planned, which was 7,5 million EUR). The chairman of the Board Mark Anžur is foretelling a positive result for this year. In the first two months of this year they marked a 4,6 million EUR of pure loss, which means a 25 percent improvent comparing to the same time a year before. The goverment last recapitalised the company in september 2011 with 50 million EUR, due to financial difficulties. The european committee is examining the potential braking of rules for goverment help.

A sale of a 74,9 percent of AA (goverment plus banks) is in proccess , however. The head of the company has recently stated »he is sure, that Adria can obtain a strategical partner, if not, it can withstand without one as well«. According to a report in the paper Dnevnik from march this year, the potential buyers for AA are raising their offers. Due to the unknown results for the company for the past year we have assesed the value of the company rouhly.

Elan: 0 million EUR (66,37 % owned by PDP)

The English investment fund Argus Capital backed down from ownership intentions after two years of negotiating, supposedly due to poor results. The manufacturer of sports products was counting on 15 million EUR of recapitalisation, with which they would be able to invest in developement and at the same time restore the 10 million EUR or unallowed goverment aid (the european committee recently acknowledged the recapitalisation from 2008 as unauthorised). Due to the burden of the european penalty there would be no proceeds for the goverment.

Aero Celje: 1,5 million EUR (32,60 % owned by PDP)

PDP tried to sell this comapny last year, but the dela fell through, despite the presuming interest. Aero marked a 1,7 million EUR of loss in the year before last. It wold be difficult to sell in the renewed privatization. The goverment can hope for 1,5 million EUR for it’s share.

Helios: 30 million EUR (17,85 % owned by Kad, Modra zavarovalnica)

The company marked a 337,9 million EUR of pure income in the last year, of which 4,4 million pure profit and it currently being sold. Helios marked a 852 thousand EUR loss in the first quarter, which is less than at the same time the year before.
The sellers will obtain a part of the premium above market price- The state share is worth about 30 million EUR.

Aerodrom Ljubljana: 22,6 million EUR (64,85 % owned by the Republic of Slovenia, the companies Kad, Sod)

The company is worth about 22 million EUR with a 30 percent premium above market price. In the sell of this infrastructure company we are expecting a resistance, thus we have valued it very conservatively. The principal investment of the airport is the construction of a new passenger terminal by 2017; the 60 million EUR investment is co-financed by the EU (14,2 million).

Adria Airways Tehnika: 0 million EUR (67,36 % owned by PDP)

This is a company that repaires and maintaines airplanes. It is co-owned by PDP and Aerodrom Ljubljana. It has not yet published it’s results, however it accumulates a loss. Only in the year before last the loss was 4,4 million EUR. It is difficult to sell.
Cinkarna Celje: 22 million EUR (31,41 % owned by Kad, Sod)
The business fo the company is declining, the best moment to sell has already passed. We are expecting an amount of the premium above stock exchange rate.

Gospodarsko razstavišče: 5 million EUR (30,74 % owned by Kad, DSU)

The company is valued approximately. The main value of it is a real estate in the middle of Ljubljana, while the fair activity is declining.

Unior: 4,8 million EUR (53,63 % owned by PDP)

Before the actual sell, it would make sense to divide this company into two parts: the tourist part and the ferrous industry. If the company is sold as a whole, the proceeds would be somewhat above stock market price. In the first quarte, Unior has marked a 44 million EUR income from sales, which means a 5,3 percent increase from the year before, the same time. Equally, they have increased the pure profit for 81,6 percent; it now stands at 2 million EUR.

Paloma: 0 million EUR (70,97 % owned by PDP)

The paper company is in crisis of leadership, it has many debts and several failed attemps of sale. The buyers are not willing to pay the price at this moment.

Žito: 10 million EUR (37,23 % owned by Kad, Sod)

The sale of the baking company has failed several times. The sale price per stock would be somewhat above stock exchange rate, which has reached 55 EUR.

Terme Olimia: 8 million EUR (73,34 % owned by SŽ, NKBM, Kad, Sod)

The company is providing services in the sphere of tourism. It could obtain about 8 million EUR worth of proceeds. At this moment  there are many spas available for sale.

Fotona: 10,5 million EUR (70,48 % owned by PDP)

Fotona is a manufacturer of optoelectornic devices. It is currently on sale, however there are some problems with unresolved patent issues. The expected purchase price is about 10 million EUR.