Lasko Shareholders Turn Down Recapitalisation

29. 06. 2011

Lasko Shareholders Turn Down Recapitalisation


The management had proposed a subscription of fresh shares that would have doubled the capital of the group as it seeks to pay off its mountain of debt stemming from a failed management buyout under the previous management.

But the proposal for the EUR 36.5m increase in nominal capital through an issue of 8.75m new shares failed to muster sufficient support among the shareholders present.

 

In another blow to the management, it was forced to withdraw a proposal on forming a German-styled group structure - a concern - during the assembly due to a lack of support.

Despite the setbacks, Zorko said he was not overly unhappy.

"We have achieved the most that was possible at this time," he said of the assembly, which managed to appoint two missing members of the supervisory board.

Borut Jamnik and Borut Bratina were named at the proposal of the state-run KAD fund and the Probanka bank to fill in posts vacated by chief supervisor Marjan Mackosek in late March and Andrej Kebe, the representative of the workers, in early April.

 

 

Moreover, the shareholders confirmed changes to the group's bylaws that will enable the expansion of the management board from the current three members to five members. They also endorsed a discharge for the management and supervisory board.

"I'm especially happy that we managed to fill up the supervisory board, as this will allow us to get on with business normally," said Zorko.

He added that the management would again try to reach an agreement with the owners on the transformation of the group into a concern in the coming weeks.

 

The decision to reject a capital injection comes days after Lasko reached an agreement with the banks to defer the repayment of some of its loans for a period of six months.

The deferral is important as Lasko seeks to raise money by selling its non-core investments, including a 23.3% stake in Slovenia's largest retailer Mercator.

Zorko reiterated that the divestment was a priority for the group, but added that a capital injection would have to take place at some point.

 

 

Asked how much space for manoeuvring Lasko still had financially, Zorko said that the group's lifeline were the strong brands and large market share in its possession, but warned that time was running out.

If the owners fail to heed the calls from the management, the group could find itself in serious trouble, he said, adding that he hoped that some issues would be settled during the summer.

"It seems that some of the owners still don't believe what kind of a situation the group is in...some are just not taking us seriously enough."

"Our future could be bright, if we manage to achieve some understanding among us," he added.

 

SOURCE: The Slovenia Times

 

lasko