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Slovenian Sovereign Holding Supports Paloma’s Capital Increase Worth of EUR 18,2 Million

Slovenian Sovereign Holding has granted its support to capital increase in Paloma to be conducted by Eco-Invest, a.s., Republic of Slovakia; the capital increase proposed amounts to EUR 18,2 million, with the price per share standing at EUR 4.01. In accordance with the Takeover Act,  after acquiring Paloma shares in the capital increase process, the selected investor will be obliged to publish a mandatory takeover bid on the basis of which existing shareholders, including Slovenian Sovereign Holding, will have the possibility to sell Paloma shares under at least the same price per share as the one offered by the investor in the capital increase process. In accordance with Slovenian Sovereign Holding Act and SSH Capital Asset Management Policy, the acceptance of the public bid submitted in accordance with Takeover Act is one of the methods for the sale of capital assets.

 

Slovenian Sovereign Holding (hereinafter referred to as: "SSH") owns 70.97 % equity stake in Paloma which was acquired on 1. July  2015 by SSH acquisition of PDP. The consent for the disposal of capital assets in Paloma was granted by the National Assembly of the Republic of Slovenia on 21 June 2013. The management of PDP, which used to manage capital assets in Paloma until 1 July 2015, agreed on the capital increase process to be conducted in Paloma, after the company's financial condition was presented by Paloma Management Board in September 2013.

 

The capital increase in Paloma is necessary for ensuring that the company will develop into a modern and internationally competitive company. The capital increase will provide for the modernisation of Paloma's production facilities, the increase of production capacities and expansion of production at the existing site by way of which the energy efficiency, working environment and conditions of work will be improved in Paloma, together with financial results.

Since the existing owners cannot provide for relevant financial funding, necessary for the development of the company, SSH has granted its support to the capital increase proposed. The price per Paloma share offered in the capital increase process is acceptable, in the view of SSH.

 

The process for the increase in capital was run and managed by Paloma Management Board, together with legal and financial advisors; on the basis of information received, SSH has assessed that the goal of achieving the maximum possible value of Paloma share for shareholders Paloma has been pursued.

Slovenian Sovereign Holding