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The Finance Ministry reported on the latest developments in Elan in a letter to the European Commission on Friday after Brussels urged the country explain how it will reclaim the 2008 bailout, classified as illegal state aid in September 2012.

In its response, the Finance Ministry listed details in the ongoing procedure to sell Elan since 15 July 2013 in a bid to prove the sale process had been open and transparent and aimed at selling the company and restoring the illegal aid at the same time.

Currently, negotiations are being conducted with prospective investors and it should be clear by the end of October whether the sale will succeed, the Finance Ministry told the STA on Monday.

"Considering that the investors have mostly conducted due diligence, the transaction could realistically be completed by the end of 2014 and consequently the return of the state aid," the ministry said.

Slovenia had initially informed Brussels Elan would not be able to return the illegal state aid until it was supplied fresh capital by a new owner.

But with the privatisation of Elan still pending almost two years since the Commission's original decision, Brussels urged the Slovenian authorities in August to secure the repayment soon or else send the company into liquidation and reclaim the money in that way.

Officials at Elan say the company has been operating well with revenue up 19% year-on-year. Considering a positive cash flow, Elan expects to end the year in the black.