June 3 (SeeNews) - A subsidiary of Polish-based private equity fund Abris Capital Partners, PPRS Holdings Limited, will not be raising the capital of Slovenian hygiene and tissue paper producer Paloma after deciding to terminate the recapitalisation agreement the two signed in November, Slovenian state holding company SDH said.
In January, Paloma's shareholders approved a proposal made by Abris Capital Partners to raise the Slovenian company's capital by 15 million euro ($16.7 million), following the completion of a tender call for recapitalisation.
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Following Abris's withdrawal, SDH expects Paloma to examine all options for the successful completion of a capital increase. In case the process is not successful, SDH will initiate the sale of the Paloma shares it owns, the holding company, which is coordinating the privatisation process in the country, said in a statement on Thursday.
SDH hopes to complete the preparatory activities for Paloma's sale by September and then launch a public auction for the company's shares.
Back in November, around the time Paloma and Abris signed the recapitalisation agreement, SDH said its supervisory board has approved selling the state-owned 71% stake in the company. The buyer was not named.
In 2014, Paloma posted revenue of 87 million euro and earnings before interest, taxes, depreciation and amortization (EBITDA) of 6.7 million euro. It has four paper machines with total paper production capacity of 72,000 t and 28 converting lines with capacity of 93,000 t.
($=0.8968 euro)