German investors buy Slovenia’s Adria Airways

4K Invest completes acquisition healthy flag carrier
A German investment fund completed its purchase of the Slovenian flag carrier Adria Airways this week, in a deal that appears to satisfy just about everybody.
The fund, 4K Invest, now owns an equity stake of 96.09% in the carrier and will recapitalise it to the tune of €1 million. An additional capital increase of €3.1 million is being provided by Slovenia’s government.
The deal will have a long-term positive effect on the budget and the economy, said Marko Jazbec, president of the management board of privatisation facilitator Slovenian Sovereign Holding.
“We are satisfied that a demanding sale process has come to a successful closure, and prior to its sale, have enabled the company to stabilise its operation and to provide grounds to undergo restructuring with the new buyer and, at the same time, to maintain the Slovenian national air carrier in the future,” he said.
Four 4K Invest nominees were appointed to the Adria board, while Arno Schuster will take over the position of chief executive. Schuster said there would be no major changes to the flight network and that “we look actually quite positively into this year, expecting good results.”
Adria pilots called off a strike timed for March 18 as their union struck a collective bargaining agreement with the new owners.
Adria Airways posted net profit of €921,000 and operating profits of €3 million in 2014, after several years of negative results. It made a €5 million loss in 2015 but expects to return to profit in 2016.
bne IntelliNews


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