Slovenia has sold 91.6 percent of state-owned Adria Airways to German investment fund 4K KNDNS, a part of 4K Invest, state investment firm Slovenian Sovereign Holding (SDH) said on Tuesday.
SDH, which is coordinating the country’s privatisation efforts, said the state will inject 3.1 million euros into Adria while 4K will inject one million. In addition to that 4K will pay 100,000 euros ($108,720.00) for Adria.
“4K Invest, which is one of the leading business turnaround specialists in Europe…, will provide for the viability and development of the Slovenian national airline and enable other long-term positive impacts,” SDH said in a statement.
It said the sale along with the state capital injection into Adria was “the most cost-effective solution for the Republic of Slovenia, representing a lesser cost than a theoretical bankruptcy” of the airline.
SDH added the sale would be completed in the coming months, depending on regulatory approvals.
Adria is one of 15 companies that were earmarked for privatisation in 2013, and the eighth of those to be sold.
SDH plans to start the sale of state stakes in about 30 companies this year, with the biggest firm to be put on sale being Slovenia’s largest bank Nova Ljubljanska Banka (NLB).