Paloma Signs Deal for Eco-Invest Investment, Take-Over
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Paloma, Slovenia, this past week signed a deal for Slovakian financial fund Eco-Invest to invest EUR 18.2 million (approximately $20 million) into Paloma and then make a bid for the whole company. Paloma, a producer of hygiene products that is in majority state ownership, is one of about 30 Slovenian companies whose privatization is due to start or be completed this year.
Eco-Invest will offer EUR 4.01 per share of Paloma, which would value the whole firm at about EUR 13.6 million.
"Eco-Invest convinced us that it is capable and determined to invest in Paloma's development," Paloma's CEO Tadej Gosak said in a statement, adding the money will be spent to modernize production and improve labor conditions, increase production capacity, and improve energy efficiency.
This past June, Polish investment fund Abris Capital cancelled its bid after Paloma's minority shareholders asked the court to reject that deal, saying Eco-Invest was willing to offer more for Paloma.
