The Slovenia Times

Sovereign Holding Approves Sale of Elan on Number of Conditions


The wealth management division of Bank of America and the Cyprus-based Wiltan Enterprises are interested in acquiring 100% in Elan, in which stakes are also held by investment fund Triglav Naložbe, state-owned investment firm DSU and insurer Modra zavarovalnica.

Announcing the decision, the SSH said in a press release that the sale was conditional on the buyers making certain non-financial commitments related to respecting the relevant national legislation in Slovenia.

The buyers are also expected to honour the existing collective bargaining agreements and other social deals agreed with the employees or the workers' council, and to keep the Slovenian language as the language of communication with the employees.

The expected commitments also include efforts to keep the headquarters of Elan in Slovenia, to restructure the company to ensure its survival, to improve its efficiency and to maintain social dialogue with the employees in line with the Slovenian law.

The procedure to sell Elan has dragged on since 2011 due to demands related to the company's debt and repayment of EUR 12m in illegal state aid, as well as the company's poor performance in recent years.

The new owners will reportedly secure the EUR 12m to be returned to the state, and pay out EUR 1.2m to former Elan manager Uroš Korže, who is suing the company for unpaid bonuses.


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