Paloma has signed a contract for an investment via share capital increase of Euro 18.2 million by private equity fund ECO-INVEST, as the company said in the press release received by Lesprom Network.
Shareholders will be asked to approve the capital increase based on a bid price of Euro 4.01 per share by ECO-INVEST at the General Assembly. After the acquisition of shares in the recapitalization process ECO-INVEST will be required to publish a takeover bid for the remaining shares of Paloma in accordance with the Takeovers Act.
Upon signing the contract, Tadej Gosak, President of the Management Board of Paloma said: "We are pleased to reach this important milestone in the recapitalization process. ECO-INVEST has convinced us that it is capable and committed to investing into the development of Paloma due to its long history in the production of hygienic paper products and its deep understanding of the pulp and paper industry in the region. Following the successful completion of the process, the financial and strategic support of ECO-INVEST will allow us to finalize the restructuring of the company and to complete our strategic investment programme. Paloma needs further investments in the modernization of processes and equipment to improve working conditions as well as in production capacity and energy efficiency. Due to these investments we will move closer to our goal of being the leading manufacturer and provider of hygienic paper products in the Adriatic region and beyond."
ECO-INVEST is a Slovakia-based industrial and financial holding with long-term strategic investments in industrial and production companies, primarily in the pulp and paper, tissue paper, envelopes and packaging sectors.
Paloma is a joint stock company with 140 years of tradition in the production and marketing of hygienic paper products in Europe.
Source : lesprom.com