Ljubljana - National rail company Slovenske Železnice (SŽ) and coach group Nomago have signed a contract under which SŽ acquired 50% of Nomago, with an option to buy the entire stake until the end of 2024. The deal still needs clearance from the competition regulator, SŽ and Nomago said in a joint statement on Friday.

SŽ will pay EUR 15.75 million as the fixed part of the purchase price, with the remaining part depending on Nomago's performance in the coming years.

The contract was signed by SŽ director general Dušan Mes and Aleš Škerlak, chief executive director of Adventure Investments, the owner of Nomago.

"The SŽ group has entered into a strategic partnership with the Nomago group to develop mobility in Slovenia and the broader region," Mes wrote.

Škerlak said the partnership places Slovenia alongside the largest European mobility providers and will enable it to set new trends in this competitive market.

He also noted that this will enable passengers to get mobility services combining different modes of transport in one place.

Nomago has 700 coaches, and owns or manages 22 bus stations and bus stops throughout Slovenia plus five specialised maintenance shops.

Nomago operates more than 650 road passenger transport lines, provides transport services to more than 100 schools and companies nationwide, and provides public transport services in Celje, Nova Gorica, Idrija, Krško, Postojna, Velenje and Brežice.

The group has also a public bicycle rental system in eleven Slovenian municipalities, and is a leading provider of airline tickets in Slovenia.

Nomago's parent company's operating revenue is to reach a record EUR 86 million this year, up a third over 2021.

The group's operating revenue is expected to reach EUR 100 million and EBITDA EUR 15.9 million this year.

The group plans to have around 1,100 employees at the end of the year.

The state-owned railway group SŽ generated EUR 544 million in revenue last year, EUR 83.8 million in EBITDA and EUR 29.3 million in net profit.

Its profitability was above that in 2020, when net profit reached EUR 2.9 million, EBITDA EUR 52.4 million and revenue EUR 540.7 million.

SŽ said its strategic goal is to become the main pillar of mobility in the country, as it plans to offer comprehensive and environmentally friendly services.

Operating more than 500 trains a day, SŽ carries more than 14 million passengers a year.