Business News

Sale of Radeče Papir to Dubai Holding Complete

Radeče, 30 January (STA) - The Dubai-based financial holding Emkaam Investments has completed the purchase of bankrupt paper producer Radeče papir and its subsidiary Muflon. The deal is worth EUR 5.1m, with the holding already paying half a million last September.

The full transaction was completed on Thursday, a day before the deadline, Igor Rakuša, the director of Radeče papir nova, told the STA. The company has become 100% owned by Emkaan Investements.

Rakuša will take over from official receiver Borut Soklič on Friday, when the sale contract will also be signed. A part of workers will return to their jobs on Monday, according to him.

Rakuša warned that the company has not yet received the promised EUR 2m in financial incentives for foreign direct investments from the government.

"If we fail to receive the subsidy, we will not employ new workers and we will move all the technology from Radeče to another location," he said.

A total of 63 workers are to be hired initially at Radeče papir, whereby that number is expected to gradually rise to 100 by the end of the year. Another 100 are expected to be employed in Muflon.

The once-proud Slovenian paper producer has been in receivership since April 2012, which was initialised by the management due to a significant drop in orders. The company employed 370 workers at the time.

Meanwhile, Emkaam has reportedly set its sights on another acquisition target in Slovenia, as it is considering bidding for tissue maker Paloma, one of 15 companies on the government's list for privatisation.

The daily Dnevnik reported last month that the holding is one of several potential bidders for Paloma, with Slovakian company SHP and Serbia's Drenik DN being mentioned as well.

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