The Slovenia Times

Car Electronics Maker Letrika Sold to Germany's Mahle


The consortium including the state-run insurer Modra zavarovalnica, fund SOD, bank NLB and financial consulting firm CBH has signed the deal with Mahle Holding Austria, which is fully owned by Mahle.

The SSH confirmed the unofficial reports that Mahle's bid was the higher of the two binding bids for the Ĺ empeter pri Gorici-based company, previously known as Iskra Avtoelektrika.

Mahle's bid of EUR 67.10 per share is considerably higher than today's closing price of Letrika stock on the Ljubljana Stock Exchange, which stood at EUR 54. The deal puts the value of the entire company at EUR 108m.

The industrial conglomerate Kolektor, which already holds 17% in the company, confirmed that it was the second bidder, saying that Letrika went to the buyer which had offered the highest price.

"Kolektor believes that this is actually bad for Slovenian industry and integration within the industrial policy of Slovenia," the company said in a press release.

The core company Letrika currently employs more than 1,500 people, while the entire Letrika group employs 2,490.

The group last year generated EUR 243m in revenues and EUR 10.2m in net profit, increasing it more than six-fold compared to 2012. The core company meanwhile posted a EUR 8.1m net profit, almost four times more than in the year before.

In the first quarter of 2014, the group increased its revenues by 4.1% year-on-year to EUR 62.2m, while the core company increased revenues by 10% to EUR 50.6m. The group and the core company posted a EUR 3.2m and EUR 2.5m in net profit in the period, respectively.

Letrika is not excessively indebted, with its financial liabilities standing at EUR 50m. It is a major exporter, with as much as 97% of its output being sold on foreign markets.

Letrika is one of the most development-oriented companies in Slovenia, with its investments into R&D last year standing at EUR 9m or almost 4% of sales revenues.

Its main activity is electrification of vehicles. It develops a high-voltage powerplants for electrical vehicles, including the engine for the two-seater Renault Twizy.

The Stuttgart-based Mahle manufactures components and systems for combustion engines. It employs around 64,000 people at more than 140 production plants in 28 countries. It has six research and development centres worldwide and employs 4,500 development engineers and technicians.

Last year Mahle increased its revenues by 12.7% year-on-year to EUR 6.94bn, with gross profit standing at EUR 1.41bn.


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