Business News

Viator&Vektor Boss Selling Companies, Real Estate

Ljubljana, 27 August (STA) - Business daily Finance reports on Friday that Viator&Vektor chairman Zdenko Pavcek is determined to save the debt-ridden logistics group by offloading its real estate and some of its companies as well as by moving haulage operations to Romania.

According to the paper, the group owned by Pavcek has been struggling due to a drop in revenues and extensive debt.

General Manager Milan Sajn told Finance that the group planed to sell its production companies and real estate holdings in Slovenia and abroad. The group is also selling the dealership for Iveco trucks in Slovenia, he added.

Talks on the sale of the group's share in vehicle maker TVM and steel products maker and defence contractor Sistemska tehnika are reportedly going well and the new owners will probably be from Slovenia. The deals could be wrapped up by the end of the year, the paper said.

"The list of real estate [being offloaded] is three pages long and it includes our headquarters at the Ljubljana borough of Rudnik," Sajn said. He added that a separate division for logistics, Viator&Vektor Logistika, had been formed and merged with company Alpetour.

The measures also include the forming of a separate division for buses and the moving of trucking activity to Romania. "Since our business for (car producer) Dacia in Romania is growing and the labour costs are much lower there, we're moving a part of our trucks from Slovenia to Romania," he said.

Some 45 trucks will be transferred to Romania, where the group will thus operate 110 trucks. Another 170 trucks will stay in Slovenia, along with those the group has in the Czech Republic and Serbia.

The company refused to comment on the report for the STA today "due to intensive business activities of the group Viator&Vector and consequently its business interests". Finance believes that Viator&Vektor could stay afloat if the planned deals succeed and its operating costs are minimised.

The group generated revenues of EUR 182.8m in 2009, making a loss of EUR 7.2m. Viator&Vektor Logistika meanwhile generated EUR 73m in revenues and posted a loss of EUR 7.9m.

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