November 27 (SeeNews) - Slovenian hygiene and tissue paper producer Paloma said on Friday it has signed an agreement to be recapitalized to the tune of 15 million euro ($15.9 million) by Polish-based private equity fund manager Abris Capital Partners.
The offer of Abris Capital Partners, priced at 3.3 euro per share, was selected through a competitive procedure following a call for recapitalization bids issued in February, Paloma said in a statement.
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Last week, Slovenian state holding company SDH, which is coordinating the privatization process in the country, said its supervisory board has approved selling the state-owned 71% stake in Paloma. The buyer was not named.
Paloma, whose net sales fell 3% to 42.2 million euro in the first six months of 2015, has said the proceeds from the capital increase will go for the modernisation and expansion of the company's manufacturing facilities, as well as for improving its efficiency and financial results.
In 2014, Paloma posted revenue of 87 million euro and earnings before interest, taxes, depreciation and amortization (EBITDA) of 6.7 million euro. It has four paper machines with total paper production capacity of 72,000 t and 28 converting lines with capacity of 93,000 t.
($=0.945 euro)