Seven non-binding bids have been submitted for the recapitalisation of Slovenian mineral water and beer producer Pivovarna Laško.
According to local daily “Vecer”, the company management rejected one of the bids, so breweries Heineken and Carlsberg, as well as private equity investors KKR, Mid Europa Partners, CVC Capital Partners and Bain Capital are still in the race. Last month, Pivovarna Laško announced it had shortlisted the bidders, but without disclosing their number or names.
Currently, Pivovarna Laško shares on the Ljubljana Stock Exchange are traded for €26 per share and the bids, according to unofficial data, range from €8 to €27 per share. The price will be the main selection criterion.
The procedure envisages selecting an investor to enter the ownership structure of Pivovarna Laško through a significant cash injection in exchange for newly issued shares. The selected partner will have to publish a takeover bid, which has to be accepted by the owners of at least 50 per cent of Pivovarna Laško shares. After the capital hike, the selected investor will be expected to make a takeover bid.
The majority owners of Pivovarna Laško are banks, to which the company simultaneously owes several hundred million euro, and Slovenian state funds. The key shareholders, who have 44.68 per cent of total share capital, have agreed to form a consortium to jointly sell their shares. The consortium consists of the Bank Assets Management Company (the biggest shareholder, with 23.5 per cent), Kapitalska Družba, Alpen Invest, Abanka Vipa, KD Skladi, Nova Kreditna Banka Maribor and Zavarovalnica Triglav.
At the end of September, Pivovarna Laško had €242 million of debt. During the first nine months of this year, sales totaled €197 million or six per cent down on the same period last year. Operating profit before depreciation and amortization decreased by 10 per cent, to €36 million, while net profits amounted to €12 million.
