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Slovenia Business Week no. 26: State Selling Stake in Furniture Trader

The state-run Pension Fund Management (KAD) and Restitution Fund (SOD), together with the investment firm Triglav DZU, published a public invitation for bids for the purchase of a third of furniture retailer and wholesaler Lesnina

The state-run Pension Fund Management (KAD) and Restitution Fund (SOD), together with the investment firm Triglav DZU, published on Wednesday, 18 July a public invitation for bids for the purchase of a third of furniture retailer and wholesaler Lesnina.

The funds have together put up for sale 34.46% of the company's share capital, with bidding open until 31 August. Bids have to be made for the whole stake and have to be valid until 31 October.

The tender is open to all Slovenian and foreign companies and individuals. In their call to bids published on Wednesday, 18 July in business daily Finance, the sellers have reserved the right not to sell the stake even if offers are received.

The state-run KAD and SOD, which together own just over a quarter of Lesnina, have embarked on a project of selling stakes as part of the government's efforts to withdraw from the economy.

Lesnina, Slovenia's largest furniture retailer, generated revenues in excess of EUR 80m and made a profit of over EUR 8m in 2006. It shares are trading at EUR 1,950 on the Ljubljana Stock Exchange, making the stake on offer worth EUR 51.4m.

The two state-run funds and Triglav DZU had tried to sell their stakes in Lesnina last year, but decided not to sell in the end because they were not happy with the offers. Media reports suggested Harvey Norman, the Australian furniture and technical goods chain, made the best bid.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency