Eco Invest needs to transfer the EUR 18.2m to obtain a 57% stake in Paloma by mid-October. It would then need to provide another EUR 13.6m to complete the acquisition at EUR 4.01 per share.

Before endorsing the takeover by the Slovak fund, the meeting annulled the January decision endorsing a EUR 15m capital injection by the Polish equity fund Abris Capital.

The latter withdrew from the procedure due to delays caused after the initial pick for the recapitalisation was challenged in court by minority shareholders.

At today's session, the offer by Eco Invest was also endorsed by the Slovenian Sovereign Holding (SSH), which manages the 71% state stake in Paloma.

SSH representative Lidia Glavina said the offer would enable the holding to get the best possible value for its stake. "The SSH is also assessing as very positive the non-financial commitments made by the investor, which are equally important to us."

Eco Invest chairman Miroslav Vajs welcomed the decision by saying: "I believe this is a big day for both Eco Invest and for Paloma". He said that most of the fresh capital would be invested in modernising Paloma's production.

An industrial and financial holding that makes long-term strategic investments in manufacturing companies primarily in paper, tissue and packaging industries, Eco Invest expects ownership of Paloma to improve its position in Central and South-East Europe.

"Paloma has acquired an investor with understanding for paper and tissue production who has committed to enable the implementation of the strategic plan and to continue the development cycle that Paloma needs in order to enhance its market position in the region," said Paloma chairman Tadej Gosak.

Satisfaction was also aired by a representative of the trade union, whose chief demand has been for the new owner to preserve the existing number of jobs and to keep Paloma headquartered in Sladki Vrh.

"We have signed a statement with Eco Invest that is result of negotiation on our demands, and we count on it to be honoured," said Nives Hrovat of the in-house trade union.

The development was also welcomed by Tea Nevena Gorjup, a representative of small shareholders who challenged the January decision on the recapitalisation by Abris Capital.

"We believe the company is now getting a long-term strategic owner that has made the best bid," she said, adding that this time no challenge of the recapitalisation decision had been announced.

Eco Invest has committed to secure the money for the recapitalisation from own sources and has already deposited the sum with a bank.

The shareholder meeting also allocated EUR 1.7m in distributable profit for 2015 for reserves, and voted to give the management supervisory board discharge of liability for 2015.

One of the 15 state-owned enterprises slated for privatisation in 2013, Paloma employs some 730 people and puts out some 70,000 tonnes of tissue paper a year.