Big interest for Adria

More than ten potential partners bid for Adria Airways

Slovenia has received more than ten non binding bids for the sale of 74.87% of Adria Airways, as part of the government’s move to sell off state assets and raise funds. The Capital Assets Management Agency (AUKN), which supervises state holdings, has confirmed that there has been interest from over ten parties but declined to give out their names. It is also unknown when the sale could be completed. However, it is expected that talks will now begin with all of those which have expressed interest before any concrete takeover offers are made. “The objective of the tender procedure was to find the most suitable partner which will provide the company with long term stability”, AUKN said in a statement.

On Tuesday, the Slovenian daily “Dnevnik” reported that financial investment firms make up the majority of those seeking shares in Adria, which is not what the national carrier was hoping for. However, there is no concrete evidence that this is the case. Meanwhile, Adria Airways CEO, Klemen Boštjanćić said the airline will run better once it is privatised. “A strategic partner is needed because we are a small and vulnerable business. It will be much easier to operate once there is no state ownership”, Boštjačič told state broadcaster RTV SLO.

So far, Adria’s privatisation process has generated the most interest from potential partners when it comes to the EX-YU region. In 2008, B&H Airlines saw three companies purchase tender documentation with Turkish Airlines acquiring the 49% share package. In 2010, three companies purchased documentation for the takeover of Montenegro Airlines. They included El Al Israel Airlines, Etihad Airways and Arkia Israel Airlines, however, in the end none of them made an offer. Last year, Baltic Aviation Systems was the only one to purchase tender documents for the sale of Jat but decided against any further involvement.