LJUBLJANA (Slovenia), June 22 (SeeNews) – Slovenia's ‘bad bank’, the Bank Assets Management Company (DUTB), said on Thursday it has cancelled the sale of chemicals producer Cinkarna Celje due to the inadequate response from potential buyers.
DUTB and a consortium of sellers have rescinded an agreement for the provision of advisory services related to the sale of Cinkarna Celje, which entered into force in April, DUTB said in a Ljubljana bourse filing.
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According to local media, the agreement was concluded with Alta Group and its cancellation means another attempt to sell the chemicals producer has come to an abrupt end.
In August 2015, SDH said the consortium of sellers has cancelled the sale of a 70.8% stake in Cinkarna Celje as the submitted bids fell short of expectations.
During the proceedings, important environmental issues emerged which had a strong impact on the competitiveness of the procedure and the number of tenders received, SDH said at the time. It pledged to look for solutions that would eliminate the identified issues and allow the sale of shares under better conditions.
Cinkarna Celje is one of the 15 enterprises slated for privatisation by the Slovenian government in 2013.
The company was established in 1873. Its core business is the production and marketing of titanium dioxide pigment.