Adria privatisation tender closes

Results expected within days

The tender for the submission of non binding bids for the takeover of 74.9% of Adria Airways came to a close at midnight Central European Time. The results of the tender should be known in the coming days. Adria CEO, Klemen Boštjančič, did not wish to comment on the privatisation process. “Any information given would further lead to speculation which would be harmful for the company at this time. This is a very sensitive topic”, Boštjnačič explained. Once the results of the tender are made public, talks are set to begin with those that have submitted bids. As the tender is nonbinding the sale is expected to take some time until all sides come to an agreement.

The Slovenian daily “Dnevnik” reports that financial investors have expressed interest for Adria’s shares. On the other hand, a source close to the airline told the “SEEbiz” portal, “It would be best for the government to sell Adria for one euro under the condition that the new owner finally restructures the company”. However, Adria is set to end the year with better than expected financial results. It is being estimated that the Slovenian carrier will finish 2012 with a loss of eight million euros, down from twelve million last year. An eight million euro loss would make it one of the lowest amongst the national carriers of the former Yugoslavia.

The Slovenian government is looking to either sell or restructure major public owned companies, amongst which is Adria. On Sunday, the Slovenian Finance Minister, Janez Šušteršič, announced that Slovenia would need half a billion euros by the end of the year to stabilise its economy. Adria is the first EX-YU airline to be put up for sale this year. With the exception of Croatia Airlines, all national carriers of the former Yugoslavia have now been put on sale over the past four years.