Media

Successful 18.2 million capital increase of Paloma

28. 12. 2016

Paloma has successfully completed its capital increase proceedings by raising 18.2 million Euros in capital paid in by the private-owned investment fund ECO-INVESTMENT, a.s., who paid 4.01 Euros per share to acquire 57.2% of shares of Paloma. In compliance with the Takeovers Act, ECO-INVESTMENT, a.s., is obliged to publish a mandatory take-over bid subject to which existing shareholders will have the possibility to sell their shares of Paloma at minimum the same price per share as the one offered by the investor in the capital increase proceedings, as approved by the General Assembly of Paloma. The capital increase will ensure further investments in the manufacturing capacities, modernisation of processes and working conditions, transforming Paloma into a competitive development centre in South-East Europe.

Upon completion of the capital increase proceedings, the President of the Management Board of Paloma d.d., Tadej Gosak, said the following: “We are satisfied that the 2-year capital increase proceedings have been successfully completed. Paloma has already implemented significant changes in terms of restructuring business operations on all levels and boasts a strong brand in the strategic markets and a solid business model, which is the foundation for the development cycle to come. Operating profits and a loan taken out from EBRD have already facilitated investments in our manufacturing capacities, whereas fresh paid-in capital will serve to further strengthen our strategic plan.”

As is usual in this kind of transactions, the current Supervisory Board will tender a letter of resignation IN addition, the President of the Management Board of Paloma, Tadej Gosak said:

“The new owner of the company, ECO-INVESTMENT, a.s., places its trust in the current Management Board, which will continue to implement the outlined strategic plan. During the three months to come, the Management Board will draw up a concrete investment plan.” This has resulted in the appointment of two additional Members of the Management Board by the Supervisory Board. The existing Members of the Management Board will be joined by Subhi Brož, MBA, who holds a PhD degree in information management and is specialised in financial project management, investment project management and control, internal audits and strategic planning, and Vladimír Kováč, B.Sc. (Engin.), who is specialised in managing pulp and paper multinational companies. The extended Management Board is already operational.

The President of ECO-INVESTMENT, a.s., Milan Fiľo, added: ”We intend to become a long-term strategic partner and to build a strong multinational group in Central and Eastern Europe, which will be able to compete equally with multinational corporations such as SCA and Metsa Tissue. Paloma will become a competitive development and production centre in South-East Europe region, while SHP will focus on building synergies and future developments in the Czech and Slovak markets. In the upcoming years we endeavour to make further investments in the manufacturing facilities and equipment, thus providing for state-of-the-art manufacturing at full capacity.”

During the capital increase proceedings, Paloma was advised by the financial advisers Erste Group Bank AG and P&S Capital, Ltd. and by the legal adviser Odvetniki Šelih & partnerji, o.p., d.o.o. and ECO-INVESTEMENT a.s. was advised by financial advisers KPMG and local advisers I.S.O., d.o.o. and legal advisers Odvetniška pisarna Kosmač d.o.o.

For further enquiries, please contact:

Maja Rečnik

E-pošta: mediji@paloma.si

Tel.: 041 789 293

Press Release (632 KB)