Slovenia Plans Adria Airways Capital Injection

January 13, 2016

Slovenia will provide capital for state-owned Adria Airways when it sells the airline, according to a plan drawn up by state investment firm Slovenian Sovereign Holding (SDH).

"It is planned that the Republic of Slovenia will hike the capital of Adria under the condition that the company will be sold at the same time," SDH, which is in charge of privatisation and managing state assets, said on Tuesday, adding the plan still needed to be approved by the government.

SDH said the proposal was based on "a financial analysis of direct costs the Republic of Slovenia would have in case of a bankruptcy of the company (Adria Airways)".

It gave no details but the Delo daily newspaper reported that the government would inject about EUR€3 million into Adria, citing unofficial sources.

Delo also reported that Adria would receive an additional €2 million to €5 million from a German private investment fund, possibly 4K Invest or Callista Private Equity.

Adria Airways, 4K Invest and Callista Private Equity gave no immediate comment.

Adria is one of 15 state firms which were earmarked for privatisation in 2013. Seven have been sold.

In July, SDH called for expressions of interest in buying 91.58 percent of Adria. In October it said several parties had shown interest.

(Reuters)