Business News

Kolektor Expanding to Bid for Energy Projects

Idrija, 21 October (STA) - The Idrija-based industrial conglomerate Kolektor has acquired a majority stake in Turboinštitut, the Ljubljana-based manufacturer of hydro turbines, while it has also submitted a non-binding bid to take over Litostroj Power, another company in the same line of business.

Kolektor acquired 114,488 shares or 82.67% of the voting rights in Turboinštitut on Monday as a step in its plan to become an "integrator of Slovenian companies in the field of power industry", the concern said in a press release.

The company announced that it would complete the takeover in the coming days in accordance with the takeovers act, and that it would help Turboinštitut tackle its financial difficulties.

Kolektor also teamed up with Croatian company Rade Končar to make a non-binding bid for the acquisition of a 100% stake in Litostroj Power, the world-known maker of turbines for power plants that is being sold by the struggling group Cimos.

Rade Končar supplies market with generators, a product that Kolektor currently does not have in its range, which is why it sees the Croatian company as a strategic partner that would allow it to get the same conditions in public contracting as its EU rivals.

Due to complicated requirements in tenders to build hydro power plants in Slovenia, Kolektor's cooperation in the acquisition of Litostroj Power with domestic state-owned energy companies could lead to a conflict of interest, the press release from the company reads.

Kolektor entered the power industry three years ago by acquiring Etra, a power transformers manufacturer. The concern has also been eyeing a majority stake in Letrika, the car electronics maker formerly known as Iskra Avtoelektrika. It currently has 17% in Lektrika.

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