Written by:  Ales Senegacnik

Edited and published by:  William Billeaud

Slovenian automotive industry

 

 

 

 

 

 

 

Slovenian automotive industry Source: sloveniatimes.com

Background

Slovenia is a relatively young country that declared its independence in 1991 from Yugoslavia and joined the European Union (EU) in 2004. Since its independence the country’s economy has boomed. Between 2004 and 2006 the economy grew on average by nearly 5% a year, peaking at almost 7% in 2007. This made Slovenia one of the wealthiest Slavic countries in terms of GDP per capita during that period.

Due to its strategic central position geographically, it is dependent on the economic performance of the international markets, especially those of neighboring trading partners such as Italy, Austria and Germany. As a result, the global financial and European sovereign debt crises have had a more pronounced effect on Slovenia’s economy and fiscal standing. This led to a sharp decline in domestic consumption, much of which was a result of self-imposed fiscal austerity, a freeze on budget expenditure as well as the failure to implement economic reforms. All these factors brought the country to the point of political unstability and economic uncertainty – a situation still present today.

With a GDP decline of around 9% between 2008 and 2012, another significant drop being forecasted in 2013, and growth in the national debt, the need for an alternative source of capital is currently the government’s first priority. Besides an EU bailout package (e.g. as in the case of Greece), another possibility lies in the sales of the ownership stake in the companies that were nationalized under the previous socialistic regime. Currently this is the case for 15 companies, where the government is selling its majority stakes. Many of these companies are market leaders and very important players in the markets of central and eastern Europe.

With the economic situation forecasted to improve in the coming year (GDP forecasts for 2014: -0.1%), the current situation provides a great opportunity for international investors to secure their stake in strategically important market players in the region. Indeed,  in recent news, the European Commission on Wednesday cleared  Slovenia’s 4.6-billion-euro plan to recapitalize and restructure its over-extended banking system.  The country’s three biggest state-owned banks (NLB, NKBM and Abanka), will receive 3 billion euros ($4.1 billion) immediately while Factor Banka and Probanka will be shut down. Thus, the opportunity to invest in Slovenia’s best corporate assets also becomes timely and compelling.

 

Seznam podjetij za prodajo
(39. izredna seja DZ, 21. 6. 2013)

Industry

More info

Link to the company’s website

Ownership stake to be sold (in %)

ADRIA AIRWAYS TEHNIKA, D. D.

Maintenance and repair of airplanes

link

http://www.adriatehnika.com/

52,33

ADRIA AIRWAYS, D. D.

National airline

link

https://www.adria.si/en/

71,95

AERO, D. D.

Production of self-adhesive products and materials

link

http://www.aero.si/ps/index_engl.htm

32,60

AERODROM LJUBLJANA D. D.

Most important slovenian airport

link

http://www.lju-airport.si/en/Main

64,85

CINKARNA CELJE, D. D.

Chemical-processing

link

http://www.cinkarna.si/en/

31,42

ELAN, D. O. O.

Manufacturing and marketing of sport products

link

http://www.elansports.com/

66,37

FOTONA, D. D.

High-technology laser systems (mainly for dental applications)

link

http://www.fotona.com/en/

70,48

GOSPODARSKO RAZSTAVIŠČE,
D. O. O.

Most important fair center in Slovenia

link

http://www.ljubljanafair.com/home/

29,51

LETRIKA D.D.

R&D, production and sales of alternators, starters, electric and mechatronic systems.

link

http://www.letrika.com/en/

To be defined.

NOVA KBM, D. D.

Bank present on some of the CEE markets

link

http://www.nkbm.si/basic-information

81,71

PALOMA, D.D.

Manufacture and trade of hygienic tissue market leader in Southeastern Europe

link

http://web.paloma.si/en/

71,01

TELEKOM SLOVENIJE, D. D.

Market leader of telecommunications in Slovenia

link

http://en.telekom.si/

72,38

TERME OLIMIA BAZENI, D. D.

Rrents and pool cleaning services

link

/

49,70

UNIOR, D. D.

Diversified company with its activities ranging from forging parts, hand tools, special machines to tourism.

link

http://www.unior.com/

44,97

ŽITO, D. D.

Food industry producer.

link

http://www.zito.si/en/

27,24

Procedures for sale have already started and are in progress for the following companies: Adria Airways, Aero, Elan, Fotona and Telekom Slovenia.

 

*For more in depth financial analysis, personal introductions and local transaction advisory and closure, contact Lombard Global direct.  www.lombardglobal.com   

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