Ljubljana, 08 September (STA) - The state-run KAD and SOD funds put up for sale on Thursday their majority stake in the troubled Casino Portoroz. Their combined share amounts to 53.17% of the company that has become the first casino in the country which the state attempts to withdraw from.
The combined stakes will be sold as a package of 1,830,767 equity shares and 46,837 priority shares. The deadline for bids is set to 19 September.
After reviewing the bids, the two funds will have the option to launch additional negotiations or to call an auction. The sales agreement will, however, be signed only after the buyer acquires all permits required under Slovenia's gaming legislation.
Casino Portoroz has been battling with financial problems for months. The management board declared insolvency in mid-June and presented a financial restructuring plan to the supervisory board in July. The casino's shareholders are scheduled to discuss the plan on 14 September.
It envisages a capital injection of up to EUR 10m to compensate for roughly EUR 10m the company will spend to cover last year's loss and the loss planned for 2011, as well as severance payments and debt claims expected in 2011. The plan also envisages laying-off 50 of the company's 280 employees.
After the EUR 10m depreciation, the company's capital stock is to drop to EUR 4.1m; currently it amounts to EUR 14.73m. The planned capital injection would entail the issuing of fresh shares at EUR 1.16 apiece.