LJUBLJANA Feb 20 TCH Cogeme, part of Italian
investment firm Palladio Holding Group, has dropped a plan to
take over Slovenia's car parts maker Cimos as agreed in October,
Slovenian investment company Alta, which is representing TCH
Cogeme, said on Monday.
Cimos, which employs about 4,000 people in Slovenia,
Croatia, Bosnia and Serbia, was put up for sale by Bank Asset
Management Company (BAMC), Slovenia's state-owned "bad bank."
BAMC became the largest shareholder of Cimos after it took over
bad loans of local banks in 2013 and 2014.
The sale has fallen through because of a disagreement
between Cimos and the Croatian Agency for Deposit Insurance and
Bank Resolution (DAB), regarding the repayment of a part of
Cimos's debt held by DAB.
"The purchase agreement was based on expectation that by
December 31 some conditions would be met. Among those conditions
was a successful agreement between Cimos and the Croatian Agency
for Deposit Insurance and Bank Resolution (DAB)," Alta said in a
"Because the conflict between Cimos and DAB has not been
solved ... TCH Cogeme is withdrawing from the transaction," Alta
BAMC said in a statement that it had tried to reach an
agreement with the Croatian side "which has not been responding
in time in spite of being aware of the short deadlines for the
solution of this problem."
Croatia's DAB was not available for an immediate comment.
In October, BAMC had said the sale would raise 110 million
euros ($116.84 million), most of which would be used to repay
Slovenia created BAMC in 2013 when the previous government
had to pour more than 3 billion euros into local banks to
prevent them from collapsing under a pile bad loans and narrowly
avoided an international bailout.
The country has been reluctant to sell its major companies
and banks so the government still controls about 50 percent of
($1 = 0.9414 euros)
(Reporting By Marja Novak. Editing by Jane Merriman)