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LJUBLJANA (Slovenia), May 19 (SeeNews) - Slovenia's 'bad bank', DUTB, said it has completed the sale of state-owned car parts maker Cimos to TCH Cogeme, part of Italy's investment firm Palladio Holding Group.
"Closing was successfully concluded upon fulfilment of all requirements stated in the sale and purchase agreement, which the sellers and the buyer signed on October 14, 2016," DUTB said in a statement late on Thursday.
The car maker was sold for 100,000 euro ($111,400), but TCH has already remitted 18.3 million euro of fresh capital into a fiduciary account for the purpose of recapitalising the company.
The fresh capital will partly be used as working capital to modernise production and improve the company's operations and management, and partly to repay the debt to bilateral banks, the 'bad bank' noted.
The buyer expects to repay most of the remaining debt by the end of May, following which it will inject a further 15 million euro into Cimos.
The sellers of the company were DUTB with a 47.5% share, the Slovenian government with a 24.26% stake and lenders NLB with 9.44%, Gorenjska Banka with 5.74%, Abanka Vipa with 2.42%, Nova KBM with 2.2% and SID Banka with 0.74%. They gained their shareholding interest in Cimos following a 168 million euro debt-to-equity swap in 2014.
The Koper-headquartered group manufactures mainly turbo compressor and turbine housings, power train components, chassis and car-body parts. Cimos has a production footprint in four countries across Southeast Europe.