Perutnina Ptuj, a Slovenian food maker is planning to buy the Agroziv which is a Serbian agribusiness firm which is currently going through bankruptcy. Agroziv is a company based on the Serbian city of Pancevo has an estimated value of 35.4 million euros or $46.6 million which is according to Stevan Moldovan, the person monitoring the bankruptcy process. Nova Ljubljanska Banka, Slovenian’s biggest bank is among the owners of Agroziv.
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Slovenia is planning to buy majority of the largest bank Nova Ljubljanska Banka (NLB) according to a local newspaper report last Tuesday.
Delo stated that currently, the Slovenian government indirectly own 48.6% of the Nova Ljubljanska Banka and wants to own over 50% of the bank’s equity. The reason behind this is to make it easier for the government to gain stability of the euro zone member’s financial system.
Until now, the government has not given comments regarding this matter. NLB plants to raise around 400 million euros or $524 million extra capital just to meet the tougher EU capital requirements. Currently, the bank holds 36% of the local market and told Reuters that there will be a capital hike during the middle of year 2011. The share holders are said to decide regarding the capital hike this November 25.
Currently, Belgian banking and insurance group KBC (KBC.BR) hold 30.6% of the NLB.
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Nova Ljubljanska Banka will be receiving a capital boost coming from the government of Slovenia or a strategic companion right after the European Union stress tests revealed that Slovenia’s largest lender needs to increase their fresh funds.
According to the Prime Minister of Slovenia, Borut Pahor, Nova Ljubljanska Banka needs a recapitalization and the needed money will be coming either from the Slovenian government or the taxpayers, or from a strategic partner.
The said Slovenian bank passed the European Unions inspection last July 23 that revealed that its capital ration would drop to 6.3% at the end of year 2011 which will happen in case a recession takes places plus a sovereign debt crisis. The Slovenian based bank will also ask from its shareholder an amount of 400 million euro or 517 million dollars capital increase this coming September.
NLB, that concentrates its business in the Balkans, will need about 600 million euros to repay their liabilities within the next 3 years.
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