August 20 (SeeNews) - Expressions of interest have been invited for the acquisition of a majority stake in Slovenian manufacturer of car components Cimos Group, a public notice indicated.
The shareholders of Cimos - Slovenia's 'bad bank' DUTB (47.5%), the Slovenian government (24.26%) and lenders NLB (9.44%), Gorenjska Banka (5.74%), Abanka Vipa (2.42%), Nova KBM (2.2%) and SID Banka (0.74%) - are considering selling a combined 92.3% of the company's shares, a public notice published on Tuesday in the Financial Times showed.
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Cimos' business center Kinematics would be sold to a different investor.
The sale, handled by Ernst&Young as financial adviser, offers an opportunity for the acquisition of a major supplier to the European automotive industry, the notice said.
In June, the European Commission said it had concluded that restructuring aid of 97 million euro ($108.4 million) which Slovenia plans to grant to Cimos Group complies with EU state aid rules.
The Commission said at the time it found that Cimos' restructuring plan will allow the company to become viable again in the long-term without needing further state support, and without unduly distorting competition in the single market.
Cimos had been in financial difficulties due to high bank debt that it was unable to repay. In July 2013, the Commission approved temporary rescue aid worth 35 million euro for Cimos, to give the company time to work out a restructuring plan capable of ensuring its long-term viability.
Cimos Group, which employed 6,221 at the end of last year, saw its loss narrow to 53.3 million euro in 2014 from 122 million euro a year earlier as consolidated operating revenues dropped 2.7% to 401.3 million euro.
The Koper-headquartered group, which expects to generate 330 million euro in revenues this year, manufactures mainly turbocompressor and turbine housings, powertrain components, chassis and car-body parts. Cimos has a production footprint in four countries across Southeast Europe.
($=0.8946 euro)