Slovenia needs more time to sell Elan, return state aid - fin min

The ministry summed up in the letter, from December 18, the developments so far pointing out that the sales process proved very difficult because of the large number of stakeholders involved. The ministry also pointed out that it is examining other scenarios in case the buyers do not offer acceptable prices.

The vendors, the Bank Asset Management Company, or DUBT, and Gorenjska Banka received two binding offers by the deadline on November 11. The two bids envisaged returning the 12 million euro ($ 14.5 million) state aid, classified as illegal under EU competition rules, the ministry added in its statement. However, the negotiations with the potential long-term investors dragged on because of debt issues.

The two suitors required that creditors should either restructure debt or let the buyers assume it under amicable conditions, the ministry explained. Until December 5, 2014 none of the investors managed to complete the negotiations with the creditors - DUTB and Gorenjska Banka. Czech sports equipment maker Sporten and US investor Boba Ing were the bidders with the binding offers, local media reported.

The ministry emphasized that after receiving amended binding offers and entering into an agreement with creditor banks, one of the bidders will be granted the "preferred bidder" status for a limited period to make the transaction.

The privatisation of Elan has been going on for two years since the European Commission's original decision. Brussels is urging Slovenian authorities to secure the repayment soon or else send the company into liquidation and reclaim the money in that way.

Elan Group, based in Begunje na Gorenjskem, is active in winter sporting goods, energy, marine equipment and services. It is among the major state enterprises slated for privatization by the government.

($=0.8227 euro)