Slovenia is putting 15 state-owned companies up for sale in a privatisation move demanded by the EU. Paloma needs an investor who will provide money for modernisation, according to the Ministry of Finance.
As part of the bank restructuring and privatisation initiative demanded by the EU, the Slovenian government is planning to divest its stakeholdings in 15 companies, including its majority share in the tissue and hygiene paper producer Paloma d.d. Slovenia currently holds 70.97% of Paloma via the state-owned holding company PDP d.d. (Posebna Družba za Preoblikovanje).
Paloma has an annual capacity of approximately 70,000 tpy of tissue, of which 30% is made from recycled pulp. The company is primarily active in the consumer tissue segment, producing toilet paper, facial tissue, paper towels, kitchen towels and napkins. Around 9% of Paloma’s total production capacity is used for products for the away-from-home market, in particular toilette paper and towels.
In addition to Paloma, other companies being put up for sale include the sports equipment manufacturer Elan, the airline Adria Airways, the telecommunications company Telekom Slovenije, and Bank Nova Kreditna Banka Maribor (NKBM), Slovenia’s second-largest bank. The sale of state-owned assets and shareholdings is part of an extensive reform program with which Slovenia, under pressure from Brussels, is trying to generate funds for the recapitalisation of banks and for the financing of government spending.