October 30 (SeeNews) - Slovenia's sovereign holding company, SDH, said it approved the plans of state railways company Slovenske Zeleznice (SZ) to enter into a strategic partnership with Czech Republic-based EP Holding with the aim to create a key player on the freight and logistics market in Southeast Europe.
"We estimate that, with the support of the strategic partner, this is a realistically achievable goal, representing a step further in the development of SZ' freight transport and logistics," SDH's management board president, Janez Zlak, said in a statement earlier this week.
You can subscribe to our M&A newsletter here
The main purpose of the partnership is to create conditions for long-term growth in the area of transport logistics, to modernise SZ's fleet, to expand to foreign markets and reach new customers, while cutting indebtedness.
In October, local media reported that SZ plans to set up a 51/49 joint venture company with EP Holding, with the Czech partner investing money and SZ transferring its freight transport unit SZ - Tovorni Promet (SZ-TP) into the new company.
The new company will aim to double its profit and increase its revenue by 50% in the first five years of operation, as well as achieve higher competitiveness and better services for its clients via network expansion, fleet renewal and takeovers abroad, public broadcaster RTV Slovenija reported earlier.
The joint venture company will target Slovenia, northern Italy, Austria, Croatia, Hungary, Bulgaria, Romania, Serbia and the remaining Balkan states.
SDH is managing the state’s ownership interests in more than 50 companies.