Begunje na Gorenjskem, 27 May (STA) - The sports equipment manufacturer Elan published an invitation to potential investors on Friday in a bid to increase the company's capital by EUR 7-10m. Elan expects expressions of interest by 10 June.
The announcement published in Friday's edition of the daily Dnevnik is the first step in a two-stage international process to find an investor for recapitalisation and acquisition of existing ownership stakes.
Invited to participate are all prospective financial and strategic investors. The investors expressing an interest will receive an information memorandum and a notification on further procedure.
The two documents will be available to prospective investors between 13 June and 15 July.
The investors receiving the documents will be invited to make non-binding bids for the supply of fresh capital and potential purchase of an ownership stake.
In the second phase the investors will be able to carry out due diligence at Elan, whereupon they will be called on to submit binding bids.
Elan maintains the right not to choose any of the prospective buyer, to eliminate any of them during the course of the process or to change the process.
Elan's adviser in the proceedings is PricewaterhouseCoopers, the Ljubljana office of the multinational professional services firm.
The adviser will help the state restructuring firm PDP to find a way of reducing the existing 66% stake in the Begunje na Gorenjskem-based company.
The company, which focuses on skiing and nautical equipment, reported revenues of EUR 86m and a loss of EUR 1.5m for 2010, much below the planned EUR 4.4m and only a fraction of the EUR 12.6m loss the year before.
It plans to return to profit in 2012.
Its biggest markets are Italy, France, the UK and Scandinavian countries in the boat division, and Canada, the US and Germanic markets in the skiing division.
"We have become number one brand in the Czech Republic and China, where we have a 45% market share," the chairman, Robert Ferko, told an interview with the STA in April.