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Cimos Shareholders Vote in Favour of EUR 22M Capital Rise

Koper, 01 October (STA) - The shareholders of car parts maker Cimos adopted on Monday a proposal for a capital increase of up to EUR 22m via contributions in cash. The threshold for a successful increase has been set at EUR 20m, with Cimos head Franc Krašovec hoping it can be completed by the end of the year.

In line with what was a counter-proposal to the management's and adopted unanimously - Krašovec did not disclose who proposed it - Cimos is to issue a maximum of 5.2m fresh priority shares without voting rights at EUR 5 per share, which makes for EUR 26.3m.

Krašovec said that the company's activities were focused on improving the capital structure, as Cimos is considered "heavily indebted" according to what he described as the new paradigm in place in Slovenia.

When seen in the wider European perspective, the figures of the Cimos group - EUR 750m in assets and EUR 352m in debt to banks - are not that worrying, Krašovec told the press.

While nonetheless speaking of a full "blockade in the approving of loans", he stressed that the Koper-based company had so far met all its commitments, reducing its debt by EUR 32m last year and by another EUR 10m this year.

An agreement is also "relatively near" with banks on changing 42% of the liabilities into mid-term debt and 58% into long-term loans, this however depends on how successful the capital increase effort is.

The Cimos group generated EUR 240m in revenue in the first six months of the year, with results being roughly on a par with last year's, Krašovec said.

As regards the sale of the group's energy company Litostroj Power, he said that the best bidder was still being sought.

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