Slovenia Business Week no. 51, December 19th, 2005
Table of Contents:
HEADLINES ............................................................................................................................. 3
Wages up 0.6% in October ..................................................................................................... 3
S&T Hermes Plus Expands in Croatia ................................................................................... 3
Retailer Era Opens Fun Park in Skopje, Shopping Centre in Pristina, Kosovo ..................... 3
INTERNATIONAL COOPERATION ...................................................................................... 4
Luxembourg Ambassador Presents Credentials to Drnovsek ................................................ 4
Economics Minister Calls for Prompt WTO Deal ................................................................. 4
Environment Minister Says Kyoto Signatories Meeting Success .......................................... 4
New Ambassador Presents Credentials to Croatian President ............................................... 5
EUROPEAN UNION ................................................................................................................. 6
PM Satisfied With EU Budget Deal ....................................................................................... 6
Slovenia Leaving EU Summit All Smiles .............................................................................. 7
Parliament Speaker Ecstatic Over EU Budget Deal ............................................................... 7
EU Needed Budget Deal, Commissioner Potocnik Says ....................................................... 7
LEGISLATION .......................................................................................................................... 9
Government Adopts Collective Agreements Bill ................................................................... 9
STATISTICS/FORECASTS .................................................................................................... 10
Survey: Young Rely on TV for Entertainment, Seniors for Info ......................................... 10
Unemployment at 10.3% in October .................................................................................... 10
FINANCE................................................................................................................................. 11
Parliament Passes Budgets for Next Two Years .................................................................. 11
Simic Appointed Chief Taxman ........................................................................................... 11
KBC Wants to Increase its Share in NLB ............................................................................ 12
The Agency for Insurance Supervision Approves Adriatic-Slovenica Merger ................... 12
KD Group Wants Piece of Banking Pie, Its Boss Says ........................................................ 13
Ljubljana Stock Exchange .................................................................................................... 13
Foreign Exchange ................................................................................................................. 14
REGIONAL INFORMATION ................................................................................................ 15
PM: Provinces Will Be Set Up by the End of Government Mandate at Latest ................... 15
Lawmakers Pave the Way to Creation of 17 New Municipalities ....................................... 15
BRANCH INFORMATION .................................................................................................... 17
Slovenia in Favour of EU Chemicals Directive ................................................................... 17
Parliament Passes Research and Development Programme................................................. 17
COMPANIES ........................................................................................................................... 18
Viator&Vektor to Keep Croatian Haulage Company After All ........................................... 18
Droga Kolinska Supervisory Board Confirms 2006 Business Plan ..................................... 18
Adria Airways Chairman Steps Down ................................................................................. 18
Koper Municipality Selling Stake in Port Operator ............................................................. 19
Mercator's New Management Gets Green Light .................................................................. 19
State-Run Funds Join EBRD and Investment Firm in Selling Alpina ................................. 20
Carmaker Revoz to Set New Production Record in 2005 .................................................... 20
Aerodrom Ljubljana Plans 6% Increase in Revenues, Passengers in 2006 ......................... 20
Prevent Announces Layoffs ................................................................................................. 21
Triglav Acquires 61.21% of Slovenijales ............................................................................ 21
Iskra Avtoelektrika Publishes All-Cash Takeover Bid for Iskra.......................................... 22
Krka to Take Up 500 Additional Workers, Chief Exec Says ............................................... 22
Mercator Buys Back Own Shares From Triglav .................................................................. 22
Dnevnik Chairman Gets Contract Extension ....................................................................... 23
Saturnus Embalaza AGM to Decide on Delisting from LJSE ............................................. 23
SLOVENIA IN BRIEF ............................................................................................................ 24
Minister Mate Visits New Crisis Management Centre in Vienna ........................................ 24
Damijan Gets Green Light from Economics Committee ..................................................... 24
Rupel: EU-Sponsored Border Talks with Croatia to Begin in January................................ 24
National Geographic to Be Published in Slovenian as of May 2006 ................................... 24
Health Ministry and WHO Sign Cooperation Agreement ................................................... 24
Flat Tax Can't Be Part of Social Agreement, Trade Unions Say ......................................... 24
Foreign Ministry Protests Croatian Fishing Zone Borders .................................................. 24
2
HEADLINES
Wages up 0.6% in October
The average net earnings in Slovenia stood at SIT 177,502 (EUR 740.7) in October
The average net earnings in Slovenia stood at SIT 177,502 (EUR 740.7) in October, up 0.7%
over September and 6.1% year-on-year, according to Slovenia's Statistical Office.
The average gross salary per employee rose 0.8% on the month to SIT 279,506 (EUR 1,166)
in October, which is 4.7% more than a year ago.
In real terms, the gross salary in October was up 0.6% over September and 1.6% over October
2004.
In the first ten months of 2005, the average gross salary rose 4.8% to SIT 272,243 (EUR
1,136).
S&T Hermes Plus Expands in Croatia
Slovenian information technology company S&T Hermes Plus has acquired Croatian
computer networking company InfoNET projekt
Slovenian information technology company S&T Hermes Plus has acquired Croatian
computer networking company InfoNET projekt, thereby strengthening its market position in
the country, the company said on Tuesday, 13 December.
S&T Hermes Plus expects its Croatian subsidies to generate EUR 20m in revenues in 2005,
while the number of its employees in Croatia is to rise to 110 over the mid-term.
S&T Hermes Plus, owned by Austria's S&T, is one of Slovenia's leading system integrators. It
specialises in consulting, training, software development, implementation of IT solutions and
maintenance.
Retailer Era Opens Fun Park in Skopje, Shopping Centre in Pristina, Kosovo
Their launch marks Era's latest push in SE Europe
Slovenian retailer Era has opened a fun park in the Macedonian capital of Skopje and a large
shopping centre in the capital of the province of Kosovo, Pristina. Their launch marks Era's
latest push in SE Europe.
The 2,200 sq. metre "Action Park" is located at the Skopje Fairgrounds and is, according to
Era chairman Gvido Omladic, a first in SE Europe as far as its rides go. Omladic said that Era
spent EUR 1m on the fun park.
Omladic has even bigger hopes for the 8,000 sq. metre shopping centre in Pristina, which
includes a 3,300 sq. metre Era hypermarket. The centre is expected to rack up annual
revenues of 15 million euros, he said.
The shopping centre has created 120 new jobs and offers world-respected brands as well as
Slovenian products. Moreover, 80% of the products are local, Omladic added.
Era's chairman is convinced that the purchasing power in Kosovo is good, which is why his
company intends to further bolster its presence in retail in the province.
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INTERNATIONAL COOPERATION
Luxembourg Ambassador Presents Credentials to Drnovsek
The new Luxembourg Ambassador to Slovenia Christian Frederic Braun presented his
credentials to President Janez Drnovsek
The new Luxembourg Ambassador to Slovenia Christian Frederic Braun presented his
credentials to President Janez Drnovsek on Monday, 12 December, the president's office said
in a press release.
Besides labeling bilateral relations excellent, Drnovsek said that Luxembourg showed itself a
very capable EU member, as it always managed to act as a mediator between the interests of
other states. Therefore Slovenia is interested in the experiences Luxembourg gained during its
recent EU presidency.
Braun meanwhile said that Slovenia still presents a model state among EU's 10 new members
and added that the 2004 EU expansion was beneficial to the bloc.
Economics Minister Calls for Prompt WTO Deal
Slovenian Economics Minister Andrej Vizjak called for a clear platform for WTO talks to be
defined as soon as possible so that the Doha round of talks could be completed by the end of
2006, as he addressed the WTO ministerial in Hong Kong
Slovenian Economics Minister Andrej Vizjak called for a clear platform for WTO talks to be
defined as soon as possible so that the Doha round of talks could be completed by the end of
2006, as he addressed the WTO ministerial in Hong Kong on Thursday, 15 December.
"If this round of talks fails, the consequences would simply be too great, especially for
industrial products," Vizjak added.
Even though Vizjak wished for the platform to already be on the ministers' tables, "such
complex negotiations apparently have a life of their own", he lamented.
He stressed that Slovenia fully supported an open, highly transparent and an inclusive process
in order to avoid the pitfalls of the past.
At the same time innovative approaches to industrial tariffs, such as proportionally greater
cuts to higher tariffs, could yield better results, he added.
A similar approach could also be used for services, as then the "take it or leave it" approach
would not be possible, Vizjak said.
Slovenia supports specific proposals in favour of developing countries, that are specific to the
least developed countries and special and differential treatment proposals, according to
Vizjak.
"Trade is a big issue, linking Europe, Asia, and America, and must also include a bigger share
of Africa and others, so that no one will be left on the margins", he added.
The Hong Kong WTO ministerial is a continuation of the Doha round which was launched in
2001. The WTO decision-making is based on consensus of all of the organisation's 149
members.
Environment Minister Says Kyoto Signatories Meeting Success
Minister Podobnik, who returned from the conference which took place between 28 November
and 9 December in Canada's Montreal, added that all the major issues have been solved
The first meeting of signatories of the Kyoto Protocol was a success, Environment Minister
Janez Podobnik told the press on Thursday, 15 December.
Podobnik, who returned from the conference which took place between 28 November and 9
December in Canada's Montreal, added that all the major issues have been solved.
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Signatory countries also agreed to begin negotiations on their obligations after 2012, when the
first target period for emission-reduction is finished. The negotiations will start in 2006, he
added.
Podobnik also outlined the situation in Slovenia, which must reduce its emissions of
greenhouse gases by 8% until 2012. "This will serve as an incentive for the economy to
introduce new, cleaner technologies," Podobnik added.
According to the latest data, emissions in Slovenia dropped by 2% between 1986 and 2003
and the country is on the track to fulfil its targets, he said.
Slovenia also pushed ahead with its investment incentive programmes for renewable energy
sources, allocating SIT 500m (EUR 2m), which translated into SIT 2.3bn (EUR 9.6m) in final
investments, he added.
According to Podobnik, the country's environmental fund furthermore earmarked over SIT
1bn (EUR 4.17m) for individuals and SIT 3.5bn (EUR 14.6m) for companies to implement
measures for efficient energy usage.
Moreover, a construction of two natural gas power plants began this year and a regulation for
awarding a licence for a planned chain of hydro plants on the Mura River (NE) was filed for
inter-ministerial talks.
New Ambassador Presents Credentials to Croatian President
Newly-appointed Slovenian Ambassador to Croatia Milan Orozen Adamic handed his
credentials to Croatian President Stipe Mesic
Newly-appointed Slovenian Ambassador to Croatia Milan Orozen Adamic handed his
credentials to Croatian President Stipe Mesic on Thursday, 15 December, Mesic's office said
in a press release.
I am pleased that both countries are ready to solve pressing bilateral issues and that experts
are also prepared to take part, the Croatian president said on the occasion as quoted by his
office.
Mesic moreover stressed that Croatia would like to develop good bilateral relations with
Slovenia.
The new ambassador, who has succeeded Peter Bekes, previously worked at the Anton Melik
Geographical Institute of the Scientific Research Centre of the Slovenian Academy of
Sciences and Arts (ZRC SAZU). He was also a lecturer at the Faculty of Humanities at the
University of Primorsko.
5
EUROPEAN UNION
PM Satisfied With EU Budget Deal
Prime Minister Janez Jansa said that Slovenia was leaving the EU summit in Brussels
satisfied with the deal that was reached by EU leaders on the 2007-2013 EU spending plan
Prime Minister Janez Jansa said that Slovenia was leaving the EU summit in Brussels
satisfied with the deal that was reached by EU leaders on the 2007-2013 EU spending plan.
According to Jansa, Slovenia will have the same net beneficiary status as it would have had
under the proposal put forward by Luxembourg back in June, when a deal was not reached.
"Slovenia's net receipts for the seven year period will be at least two billion euros," Jansa told
the press after the marathon summit, which ended in the early hours of Saturday, 17
December.
He added that it was impossible to come up with exact figures for Slovenia at this time. The
situation is the clearest as regard cohesion funds, he said.
"We expect to get almost four times the cohesion funds that we have so far - that is SIT 120bn
(EUR 500m) annually. This is enough to provide a substantial boost to Slovenia's
development," he said.
"We have by all means achieved what we set out to do: Slovenia's net beneficiary status is at
least twice as good as it was in the current EU budget period," he said.
According to State Secretary for European Affairs Marcel Koprol, figures from the European
Commission show that Slovenia's net receipts from the EU budget would amount to 0.87% of
gross national income between 2007 and 2013. Meanwhile, British figures say that Slovenia
could receive as much as 1.02% of GNI in funds from the budget.
The figures are the same as Luxembourg's proposal and a touch under what the initial British
deal had proposed, he added.
However, the net beneficiary status is not the only crucial issue in the deal, Jansa said, adding
that improved conditions for the phasing of EU cohesion aid was an important part of the
agreement.
Until 2010, Slovenia will have additional time to draw all the funds available to it, while the
country's share in EU-sponsored projects will also be lower (15% instead of 20%), he
explained.
Jansa said he was pleased with the overall deal. "The outcome is better than we had expected
after the first proposals. The structure of the budget is better and more money has been set
aside for the implementation of the Lisbon Strategy."
He explained that the latest British proposal, which raised slightly the spending cap, resulted
in additional development funds being made available. However, the changes had no
substantial effect for Slovenia.
Moreover, the Slovenian prime minister praised Britain for agreeing to a further cut in its
rebate. Britain's agreement to exclude all enlargement-related effects from the rebate "was a
brave step forward", he said.
He also welcomed the agreement by EU leaders to commit to a thorough future overhaul of
the EU budget.
Although the EU budget deal still needs approval from the European Parliament, Jansa
believes that this should be much easier now that there has been an increase in the funds
envisaged for administrative costs in the EU.
Jansa also hailed the decision of the EU leaders to grant Macedonia the status of an EU
candidate country. This is an important signal for Macedonia and the whole of the Balkans, he
said.
6
Slovenia Leaving EU Summit All Smiles
Slovenia is coming away from this summit satisfied, Slovenian Prime Minister Janez Jansa
said after he and leaders of 24 other EU member states hammered out a deal on the 20072013 EU spending plan in marathon talks
Standing to lose the bulk of EU development aid if a deal on the EU budget was not reached,
Slovenia came away from the EU summit in Brussels with more than just one reason to smile.
Slovenia is coming away from this summit satisfied, Slovenian Prime Minister Janez Jansa
said early on Saturday, 17 December, after he and leaders of 24 other EU member states
hammered out a deal on the 2007-2013 EU spending plan in marathon talks.
Not only was Slovenia's wish for the prompt adoption of the EU budget fulfilled, the country
got as good a deal as it would have if the budget had been agreed upon back in June when
Luxembourg was still the EU president.
"Slovenia's net receipts for the seven year period will be at least two billion euros," Jansa told
the press.
According to him, this means that Slovenia will have the same net beneficiary status as it
would have had under the proposal put forward by Luxembourg back in June.
Although saying that it was impossible to speak about exact figures at this time, he said that
Slovenia "expects to get almost four times the cohesion funds that we have been receiving so
far - that is SIT 120bn (EUR 500m) annually".
"We have by all means achieved what we set out to do: Slovenia's net beneficiary status will
be at least twice as good as it is in the current EU budget period," he added.
However, the net beneficiary status is not the only crucial issue in the deal, Jansa said,
explaining that improved conditions for the phasing of EU cohesion aid was an important
element.
Until 2010, Slovenia will have additional time to draw all the funds available to it, while the
country's share in EU-sponsored projects will also be lower (15% instead of 20%), he
explained.
In the end, Slovenia got a solid and timely deal. Slovenia will now remain entitled to
Objective 1 development aid given to countries that do not exceed 75% of the average GDP in
the EU - this year's statistics keep it just under the threshold, while new data would have most
likely pushed it over the edge.
Parliament Speaker Ecstatic Over EU Budget Deal
Speaker of Parliament France Cukjati has said he is "very happy" that EU leaders managed
to reach agreement on the 2007-2013 EU spending plan at their summit in Brussels
Speaker of Parliament France Cukjati has said he is "very happy" that EU leaders managed to
reach agreement on the 2007-2013 EU spending plan at their summit in Brussels.
"I'm very happy that there has been an agreement...and even more so because the deal is even
better for Slovenia," Cukjati said on Saturday, 17 December.
According to him, feet-dragging and an unwillingness to make concessions in the talks did not
benefit any of the member states, and least of all the EU as a whole.
Now that a deal has been reached, the EU can turn to other pressing issues, including
implementing the Lisbon Strategy, he added.
EU Needed Budget Deal, Commissioner Potocnik Says
The European Commissioner for Science and Research Janez Potocnik has expressed his
satisfaction with the deal reached by EU leaders on the 2007-2013 EU spending plan
The European Commissioner for Science and Research Janez Potocnik has expressed his
satisfaction with the deal reached by EU leaders on the 2007-2013 EU spending plan.
7
"The EU truly needed this deal. It should allow for fresh impetus and for attention to be
turned to future challenges," Slovenia's European commissioner said in Brussels on Saturday,
17 December.
He added that the European Commission would have preferred to see the final budget
framework better reflect the Commission's proposals by being more ambitious in answering
the main challenges facing the EU.
Nevertheless, Potocnik said he was happy that "an important step forward has been made" in
raising funds for research and development.
Moreover, he said he was disappointed by the drawn out talks on the spending plan. "It was
very tiring and did not help the EU's image," he said.
"The way the talks unfolded and the blatant inclination to putting national interests before
common interests have made me realise that we need to take a long, hard look at how to
proceed from here," he added.
8
LEGISLATION
Government Adopts Collective Agreements Bill
The basic principle of a new bill on collective bargaining agreements is that concluding such
agreements is voluntary
The basic principle of a new bill on collective bargaining agreements is that concluding such
agreements is voluntary, said Labour Minister Janez Drobnic, after the government adopted
the bill at its session on Wednesday, 14 December.
The bill therefore does not make collective bargaining agreements obligatory neither does it
define their contents, type or level at which such agreements should be made, he added.
The bill was agreed upon together with social partners, Drobnic stressed, but added that a full
consensus was not reached on all issues.
According to international standards only organisations with voluntary membership can
conclude such agreements, Drobnic added.
However, the bill allows a three-year transitional period, during which organisations with
obligatory membership, such as the Chamber of Commerce and Industry of Slovenia, would
be able to conclude collective agreements.
Under the bill a collective bargaining agreement is made between and valid only for those that
have concluded it. Provisions of the agreement are moreover binding for all workers,
regardless of their union membership.
9
STATISTICS/FORECASTS
Survey: Young Rely on TV for Entertainment, Seniors for Info
A survey commissioned by the European parent of Slovenian cable operator UPC Telemach
has found a large generational gap, with young Europeans saying they use TV for
entertainment, while older people use it as a source of information
A survey commissioned by the European parent of Slovenian cable operator UPC Telemach
has found a large generational gap, with young Europeans saying they use TV for
entertainment, while older people use it as a source of information.
The results of the UPC survey were presented on Tuesday, 13 December in Ljubljana by
representatives of UPC Telemach.
According to the results, all generations see television as the most reliable source of
information, followed by radio and newspapers.
In Slovenia, 33% of those polled place more trust in news broadcast by the public broadcaster,
while 18% favoured commercial TV stations.
Content-wise young Slovenians were strongly against religious shows, with 50% believing
that such shows should not be broadcast on television, and 10% watching them.
The young are also not interested in foreign or domestic politics, with only 37% watching
such shows, while 36% expressed no interest whatsoever in the topic.
The survey polled 6,000 individuals and was conducted over the Internet, by telephone and
with the help of street questionnaires. The company did not state the period in which the
survey was carried out.
In total, 14 European countries where UPC offers its services took part: Austria, Belgium,
Czech Republic, Hungary, France, Ireland, Netherlands, Norway, Poland, Romania, Slovakia,
Slovenia, Sweden and Switzerland.
Unemployment at 10.3% in October
As many as 94,224 unemployed persons were registered in October, which is 3.4% more than
in September and 1.8% more than October 2004
Slovenia's registered unemployment rate in October stood at 10.3%, up 0.3 percentage points
over September, according to the Statistical Office. Meanwhile, the ILO standards-based
unemployment rate was at 6.3% in the third quarter of 2005.
As many as 94,224 unemployed persons were registered in October, which is 3.4% more than
in September and 1.8% more than October 2004.
The statistics also show that 8.6% of men and 12.5% of women were registered as jobless.
The unemployment rate for the first ten months of this year averaged 10.1%.
Slovenia's labour force numbered 911,719 in October. Among these, 817,495 were employed,
up 0.2 % on September and 0.6% on October 2004.
In October, 669,100 people were employed in companies and other organisations, which is
1% more than a year ago, while 66,411 self-employed persons found a job, down 0.2% over
October 2004.
The number of farmers decreased by 5.5% over the course of the year and currently stands at
31,365.
10
FINANCE
Parliament Passes Budgets for Next Two Years
Outlining the documents in parliament, Finance Minister Andrej Bajuk labelled the 2006
budget bill good, while adding that the 2007 bill still remains open due to a number of
variables, including the outcome of talks on the EU spending plan
Parliament has passed the budgets for 2006 and 2007 after two days of debate on Monday, 12
December.
Debating the 2006 budget on 10 December, lawmakers adopted nine amendments of the 140
put forward, redistributing SIT 558.7m (EUR 2.33m) worth of funds.
In line with the passed document, 2006 budget expenditure is to stand at SIT 1,858.1bn (EUR
7.76bn), with revenues at SIT 1,756.7bn (EUR 7.33bn). The budget deficit is estimated at
1.4% of GDP.
The 2007 budget was debated on 12 December, with lawmakers passing seven amendments in
which SIT 548.9bn (EUR 2.29m) was redistributed.
Budget expenditure in 2007 is projected at SIT 1,954.3bn (EUR 8.16bn) and revenues at SIT
1,861.2bn (EUR 7.77bn). The budget deficit is estimated at 1.2% of GDP.
The biggest item in the redistributed funds for the next two years is the newly-established
government reform office, which is to get around SIT 350m (EUR 1.46m) over the two years.
Outlining the documents in parliament, Finance Minister Andrej Bajuk labelled the 2006
budget bill good, while adding that the 2007 bill still remains open due to a number of
variables, including the outcome of talks on the EU spending plan.
Parliament also passed the act on budget implementation, which deals with the operational
details of the two budgets.
Bajuk said that the law allows the government some flexibility in managing public finances,
particularly in creating new spending items for Slovenia's EU presidency in the first half of
2008 if that proves necessary.
The opposition criticised the document for giving the government excessive power in
determining how to manage public finances.
Simic Appointed Chief Taxman
Finance Minister Andrej Bajuk told the press after the cabinet's session that a man of Simic's
experience in the field of taxes can contribute to a simplified tax system and a friendly tax
administration
The government appointed Ivan Simic the acting director of the Slovenian Tax
Administration (DURS) at its session on Wednesday, 14 December. Simic, who is to take
over on 1 January 2006, is to succeed Zvezdana Grzina.
Finance Minister Andrej Bajuk told the press after the cabinet's session that a man of Simic's
experience in the field of taxes can contribute to a simplified tax system and a friendly tax
administration.
He also outlined what direction the tax system is to take in the next few months, saying that
Slovenia used to have a strong tax institution, however, it is now divided into five institutions.
According to Bajuk, some of the institutions could be consolidated in order to achieve a more
efficient and cheaper tax administration. He was referring to the double data base and the noncooperation between the five institutions.
He moreover stressed that institutional change was needed and that it was difficult for the
people who had designed the system to change it now. The finance minister however
expressed respect for Grzina's work, who became DURS acting director in June 2004.
11
He feels that the government "took the right step in the right direction" by appointing Simic as
well as by appointing the previous week Andrej Sircelj the new state secretary at the prime
minister's office responsible for taxes.
Simic (46), who has been working as a tax adviser for over 17 years and is currently
concluding his master's degree studies at the Maribor Faculty of Law, believes that with
certain support he could do a lot in the field of tax administration. Nevertheless, he feels that
DURS has improved in recent years.
Simic, who in 1993 co-founded the Slovenian Tax Advisers' Association, first intends to meet
the DURS management to be briefed on the most pressing issues. "Only then will I be able to
say what measures will be taken first," he told the press upon the appointment.
KBC Wants to Increase its Share in NLB
KBC wants to raise its share in Slovenia's largest bank, NLB, from the current 34% to 51%,
and is awaiting approval from the Slovenian government
KBC wants to raise its share in Slovenia's largest bank, NLB, from the current 34% to 51%,
and is awaiting approval from the Slovenian government, management board member of the
Belgian banking and insurance group Andre Bergen told the press in Brussels on Friday, 16
December.
According to Bergen, the KBC is awaiting a decision by a government commission, which
has to decide on the issue by 23 December. The current moratorium preventing KBC from
raising its share in the NLB runs out at the end of this year.
We are waiting the cabinet's decision. If it turns out to be negative, we will reconsider our
future plans, Bergen said.
He added that KBC wants to inject fresh capital into the NLB, while keeping it a Slovenian
bank under Slovenian management. We entered the NLB as a strategic partner and want it to
become a regional headquarters for operations in the Balkans, Bergen explained.
He reconfirmed KBC's desire to increase its presence in Croatia, Bosnia-Herzegovina and
Serbia, but stressed that the Belgians have no intentions to compete with NLB in the area.
He added that KBC is ready to help in a limited way in solving the dispute between Slovenia
and Croatia regarding foreign currency savings of Croatians in the defunct Ljubljanska banka
(LB), but added that this is a political issue.
Bergen also commented on a possible tie-up between NLB and the country's largest insurer,
Zavarovalnica Triglav, labelling it a good idea. "However, we have not yet held formal
discussions with the Slovenian government on such plans", he added.
Meanwhile, KBC's chief executive Willy Duron presented the company's long term strategy
plans, which include an increase in KBC's presence in Central and Eastern Europe.
The Agency for Insurance Supervision Approves Adriatic-Slovenica Merger
The merged Adriatic Slovenica insurer will begin joint operations before the year is out,
becoming the second-biggest insurance company in the country, with a market share of 17%
The Agency for Insurance Supervision has cleared a planned merger of insurers Adriatic and
Slovenica, Adriatic said on Friday, 16 December.
The merged Adriatic Slovenica insurer will begin joint operations before the year is out,
becoming the second-biggest insurance company in the country, with a market share of 17%.
The supervisory boards of both companies approved the annexation of Slovenica to Adriatic
in May. The merger was then confirmed by the shareholders of the two companies later that
month.
The majority stake in the newly-created company will be held by asset management firm KD
Group. The insurer will have its headquarters in Koper.
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The management boards of the two companies expect the merger will create some SIT 2.5bn
(EUR 10.43m) in savings. They also estimate that a total of 164 workers might be made
redundant.
KD Group Wants Piece of Banking Pie, Its Boss Says
Asset management firm KD Group is interested in taking part in the creation of consolidated
banking groups in Slovenia, KD Group chairman Matjaz Gantar has told the daily Dnevnik
Asset management firm KD Group is interested in taking part in the creation of consolidated
banking groups in Slovenia, KD Group chairman Matjaz Gantar has told a paper.
In an interview published in the daily Dnevnik on Saturday, 17 December, Gantar said that
the consolidation of Slovenian banks into groups would be the best answer for the sector.
We are interested in taking part in this process, he said, adding that Slovenian banks should
not be sold only to foreigners.
"There is a lot of speculation that we have expressed interest in Abanka (Slovenia's thirdlargest bank), but that is not true," he said.
Moreover, he said that there has been a lot of talk regarding the creation of a financial "pillar"
around Slovenia's second-largest bank, NKBM, but little has actually been done in this regard.
According to him, it would make sense for the creation of such a group to be achieved
through the integration of reinsurer Pozavarovalnica Sava, insurers Zavarovalnica Maribor,
Adriatic and Slovenica (the latter two owned by KD Group) as well as KD Group," he said.
Gantar told Dnevnik that KD Group was looking to bolster its position as the leading mutual
fund operator in Slovenia by offering a comprehensive range of services.
KD Group is interested in entering the banking sector so that it could offer its customers a
wide range of financial services, including loans.
Moreover, Gantar said that it was inevitable that the state will allow Belgian financial giant
KBC become a majority owner of Slovenia's largest bank, NLB.
"It makes no sense to debate whether it would be smart to allow...KBC to become a majority
owner. Furthermore, I don't think there is a domestic buyer that would be willing to offer as
much as KBC will," he said.
Ljubljana Stock Exchange
Major Slovenian blue chips slid in an uninspiring week on the Ljubljana Stock Exchange
(LJSE), pushing the SBI 20 benchmark index 30.4 points (0.66%) lower to 4,596.51
Major Slovenian blue chips slid in an uninspiring week on the Ljubljana Stock Exchange
(LJSE), pushing the SBI 20 benchmark index 30.4 points (0.66%) lower to 4,596.51.
The going was slow: regular deals generated a mere SIT 2.7bn (EUR 11.3m) in turnover.
Block deals contributed an additional SIT 4.37bn (EUR 18.24m) in volumes.
Leading the way down last week were the two biggest names on the LJSE, drug maker Krka
(-2.2% to SIT 102,971/EUR 429.76) and fuel trader Petrol (-2.5% to SIT 70,377/EUR
293.73), as investors cashed-in on recent gains.
In the absence of any solid directional leads, investors did little trading with other blue chips.
Retailer Mercator was the only other share to generate a noteworthy turnover on the official
market. It edged 0.04% lower to SIT 37,505 (EUR 156.53) as investors first applauded the
appointment of a new management board at the company and then sent the stock sliding
again.
The mood was even more downbeat on the free market, where a continued retreat by popular
investment funds dragged the PIX investment fund index 49.29 points (1.23%) lower to
3,900.85.
Meanwhile, the BIO bond index ended the week down 0.58 points (0.47%) at 122.57.
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Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.59 (+0.00)
U.S. dollar (USD) - SIT 203.02 (-3.15)
Swiss franc (CHF) - SIT 155.00 (-0.65)
British pound (GBP) - SIT 353.59 (-1.72)
14
REGIONAL INFORMATION
PM: Provinces Will Be Set Up by the End of Government Mandate at Latest
The introduction of provinces is one of the cabinet's key goals
For the government, local administration is a crucial factor of development. Therefore, it will
make an effort to improve the situation in this field and ensure the autonomy of local
communities, PM Janez Jansa pledged as he addressed a meeting of Slovenian mayors in
Postojna on Monday, 12 December.
The constitution guarantees local communities autonomy, and so the state should not
determine their functioning, said Jansa, and added that it is not up to the government to
interfere with municipal budgets or mayors' salaries.
The role of local communities will be set anew with the introduction of provinces, which is
one of the cabinet's key goals, Jansa stressed.
The government will try to reach this goal with constitutional changes, but if this proves
impossible, it will try to establish them within the existing legislative framework by the end of
its mandate, Jansa pledged.
Referring to the general situation in Slovenia and the planned economic and social reforms,
Jansa said the cabinet had achieved a solid economic growth as well as lowered inflation,
unemployment rate and public spending.
The prime minister sees the reforms as inevitable. Slovenia is a part of the European
environment which would like to preserve the principle of sustainable development, the basis
of which is economic development, Jansa continued.
Jansa later on presented the reforms to the mayors together with the head of the government's
reform committee Joze P. Damijan and the national coordinator for the implementation of the
Lisbon Strategy Janez Sustersic.
The prime minister is also accompanied in the town of Postojna by several ministers: Local
Government and Regional Policy Minister Ivan Zagar, Public Administration Minister Gregor
Virant and Labour Minister Janez Drobnic.
Lawmakers Pave the Way to Creation of 17 New Municipalities
The would-be municipalities are: Apace (east), Cirkulane (NE), Kostanjevica na Krki (SE),
Sveta Trojica (NE), Sredisce ob Dravi (NE), Sveti Tomaz (NE), Makole (NE), Poljcane (NE),
Rence-Vogrsko (west), Straza (SE), Smarjeske Toplice (SE), Bizeljsko (SE), Ankaran-Hrvatini
(SW), Mokronog-Trebelno (SE), Rimske Toplice (east), Izlake (central), Dobrova (central)
and Polhov Gradec (central)
Lawmakers have paved the way to the creation of 17 new municipalities in Slovenia by
passing a decision on local referendums in the would-be municipalities. In a heated debate,
the National Assembly called local referendums for 29 January in 18 localities.
The outcome of the referendums is to act as a guide for the government in drafting changes to
legislation that would establish new municipalities. However, the referendums will not be
binding for lawmakers.
All the procedures related to the creation of new municipalities need to be wrapped up by 25
March if the new municipalities are to be included in the local elections that are to be held late
next year.
The vote in favour of the referendums was 45 to 8. The would-be municipalities are: Apace
(east), Cirkulane (NE), Kostanjevica na Krki (SE), Sveta Trojica (NE), Sredisce ob Dravi
(NE), Sveti Tomaz (NE), Makole (NE), Poljcane (NE), Rence-Vogrsko (west), Straza (SE),
15
Smarjeske Toplice (SE), Bizeljsko (SE), Ankaran-Hrvatini (SW), Mokronog-Trebelno (SE),
Rimske Toplice (east), Izlake (central), Dobrova (central) and Polhov Gradec (central).
16
BRANCH INFORMATION
Slovenia in Favour of EU Chemicals Directive
Slovenia supported a directive on the registration and authorisation of chemical substances
(REACH), labelling it a good balance between health benefits and competitive advantages
Slovenia supported a directive on the registration and authorisation of chemical substances
(REACH), labeling it a good balance between health benefits and competitive advantages,
State Secretary Andrijana Starina Kosem said on Tuesday, 13 December.
Starina Kosem, attending an EU Competitiveness Council session in Brussels, added that the
compromise directive includes the Slovenian-Maltese proposal on reducing the number of
chemicals that need to be registered.
According to the proposal, only data on hazardous chemicals will need to be supplemented,
while existing data will suffice for all other substances, which is "of key importance for small
and medium enterprises", she added.
The compromise EU chemicals law, watered down in the past four years in line with industry
demands, will require companies to provide comprehensive information on some 30,000
chemical substances.
Parliament Passes Research and Development Programme
The programme aims to bolster research and development in Slovenia, mostly through the
promotion of closer cooperation between all involved sectors
Parliament unanimously passed on Friday, 16 December the 2006-2010 National Research
and Development Programme. The programme aims to bolster research and development in
Slovenia, mostly through the promotion of closer cooperation between all involved sectors.
According to Minister of Higher Education, Science and Technology Jure Zupan, the goal of
the programme is to unite research capacities of higher education centres, research institutes
and businesses into "an effective unit".
Investment into research and development is to reach 3% of GDP by 2010, with the business
sector contributing 2% of GDP and public funds reaching 1% of GDP.
The plan is to create a science- and business-friendly environment conducive to the
establishment of high-tech and innovative companies, he said.
The programme also aims to speed up the development of vital economic sectors, notably
ICT, advanced materials production and nanotechnology.
By raising state spending on research and development by 0.1% of GDP annually, the
government hopes to prop up research infrastructure at universities, help new high-tech
companies, attract foreign researchers, make natural sciences studies more popular and
consolidate public research institutes.
17
COMPANIES
Viator&Vektor to Keep Croatian Haulage Company After All
In line with the adapted deal, the Slovenian company will take control of Promal on 9
January
Slovenian logistics company Viator&Vektor will get to keep a struggling Croatian haulage
company that it bought in August but the acquisition of which was later blocked by the
Croatian government.
The deal Viator&Vektor signed with Tvornica lakih metala (TLM) on the acquisition of
TLM's logistics arm Promal for 224,000 euros will be allowed to stand in line with an
agreement the Slovenian company reached with the Croatian government the previous week.
Viator&Vektor chairman Zdenko Pavcek and Croatian government officials agreed that the
original agreement between Viator&Vektor and TLM should be adapted so as to exclude a
provision making Viator&Vektor the official haulage company for TLM, the Slovenian
company said.
In line with the adapted deal, the Slovenian company will take control of Promal on 9
January.
The only change to the original deal is that Viator&Vektor's Croatian subsidiary will be a
preferential supplier of transport services to TLM instead of the exclusive supplier,
Viator&Vektor added.
The deal between Viator&Vektor and TLM ran into trouble after Croatian hauliers threatened
to hold mass strikes as they feared their existence was being threatened by the provision that
would make Viator&Vektor the exclusive haulage company for TLM.
The Croatian government froze the deal in September and launched talks with Viator&Vektor
on its annulment. However, after months of talks, the two sides reached a compromise.
Droga Kolinska Supervisory Board Confirms 2006 Business Plan
According to the plan, the projected sales revenues of the entire group will amount to SIT
81bn (EUR 338m) next year
The supervisory board of food group Droga Kolinska confirmed the company's business plan
for 2006 on Monday, 12 December with head Igor Bavcar praising the ambitious goals of the
company that was created with the merger of Droga and Kolinska in May.
The group plans to save EUR 3.7m through synergy effects by the end of 2006, on top of
EUR 4.8m that it already saved from May to November 2005.
According to the plan, the projected sales revenues of the entire group will amount to SIT
81bn (EUR 338m) next year.
The financial plan forecasts 13% growth of net revenues next year. Droga Kolinska plans to
make 72% of its revenues on foreign markets (mainly in Serbia-Montenegro, Croatia and
Bosnia-Herzegovina).
In line with the plan, the majority of the SIT 9.4bn (EUR 39.23) allocated for investments and
marketing activities in 2006 will be used to strengthen the market position of the group's main
brands.
Adria Airways Chairman Steps Down
Until 1 January, Adria will be managed by a two-member board, comprised of Iztok Malacic the acting chairman - and Tadej Turk
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Branko Lucovnik stepped down as chairman of Slovenian flag carrier Adria Airways on
Monday, 12 December blaming the recently failed negotiations with the pilots' and flight
attendants' union and personal reasons for his decision, the company said in a press release.
Lucovnik said he considered the trade union's refusal to accept lower wages to be a vote of no
confidence.
While sharing Lucovnik's position with regard to employee confidence, the supervisory board
also decided to accept his resignation on performance grounds.
Until 1 January, Adria will be managed by a two-member board, comprised of Iztok Malacic the acting chairman - and Tadej Turk. Both were appointed to work alongside Lucovnik in
September this year.
Lucovnik's term would have run out in October 2006. He became Adria's boss in October
2001.
Koper Municipality Selling Stake in Port Operator
The bidding process will be open until 30 January 2006
The municipality of Koper has published a public call to bids for its stake in sea port operator
Luka Koper as it is looking to raise funds for a new school.
The call was published in the dailies Delo and Financial Times on Tuesday, 13 December. It
sets an asking price of SIT 3bn (EUR 12.5m), with the winning bid to be the one offering to
buy the least shares.
The municipality owns 698,293 shares - nearly 5% of all shares - of the operator of Slovenia's
lone maritime port.
The money is to be spent on the construction of a new public school in the town, the
municipality said in a press release.
The bidding process will be open until 30 January 2006, with the winner being selected by the
commission overseeing the sale, which is made up of independent experts.
The municipal council is expected to confirm the deal in February, the municipality added.
Mercator's New Management Gets Green Light
The supervisory board of retailer Mercator has unanimously backed a new management
board led by Ziga Debeljak
The supervisory board of retailer Mercator has unanimously backed a new management board
led by Ziga Debeljak. The new four-strong team is due to take office on 1 January 2006 for a
five-year term, Mercator said on Tuesday, 13 December.
In addition to chairman Debeljak, the new management are Vera Aljancic Falez, who was
also in the previous management board, Mateja Jesenek and Peter Zavrl.
All of them held top managerial positions in Mercator before. Debeljak, who is returning to
Mercator from home appliances maker Gorenje, believes the team represents a balance
between experience and fresh vision.
Speaking at the session of the supervisory board, he said the management was aware of the
big challenges ahead. "Despite fierce competition, we want to remain the leading retailer at
home and become the leading retailer outside Slovenia through strategic partnership and
growth."
Debeljak will replace the popular Zoran Jankovic, who was dismissed in mid-November at
the behest of the new owners, brewer Pivovarna Lasko and holding Istrabenz.
Debeljak holds a master's degree from Ljubljana's Faculty of Economics, where he studied
after graduating in computer engineering. The new CEO, who was born in 1971, has been a
member of the Gorenje management since 2003, where he came from Mercator.
As Mercator CEO he will also be in charge of development and investments, IT, and finance,
controlling and accounting.
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Aljancic Falez will be responsible for personnel, organisation, legal and general affairs;
Mateja Jesenek for marketing and procurement; while retail, wholesale and logistics will be in
the domain of Peter Zavrl.
State-Run Funds Join EBRD and Investment Firm in Selling Alpina
The state-run Restitution Fund (SOD) and fellow Pension Fund Management (KAD) as well
as the European Bank for Reconstruction and Development (EBRD) and asset management
company Maksima Invest have teamed up to sell a 56.56% stake in footwear producer Alpina
The state-run Restitution Fund (SOD) and fellow Pension Fund Management (KAD) as well
as the European Bank for Reconstruction and Development (EBRD) and asset management
company Maksima Invest have teamed up to sell a 56.56% stake in footwear producer Alpina.
The joint call to bids for the majority stake in Alpina, which specialises in sports footwear,
was published on Wednesday, 14 December. The bidding will be open until 28 February.
According to the call, the bid with the highest offer for the 117,218 shares will be selected the
winner, although the sellers have no obligation to enter into a deal with any of the bidders.
SOD owns 29,545 shares, KAD 22,718 shares, EBRD 32,000 shares in Maksima Invest
32,955 shares of the Ziri-based company.
Alpina generated SIT 4.7bn (EUR 19.6m) in revenues in the first half of the year, a drop of
1.5% on the same period in 2004. The company expects to finish 2005 with a profit of around
SIT 200m (EUR 834,000), which is roughly the same as last year.
Carmaker Revoz to Set New Production Record in 2005
Slovenian carmaker Revoz has already beaten its previous record of 131,000 cars produced
in a year and is looking to finish the year having made 175,000 cars
Slovenian carmaker Revoz has already beaten its previous record of 131,000 cars produced in
a year and is looking to finish the year having made 175,000 cars, according to the company's
chairman Marcel Brouiller.
Speaking for the daily Delo on Wednesday, 14 December, Brouiller looked back on 2005 as a
very successful year for the Renault-owned Revoz. He also said that 2006 would be a year of
continued production of the popular Clio II and of preparations for the launch of production of
a new model, known by its codename X44, which is to hit the assembly line sometime in
2007.
According to Brouiller, the cooperation between Revoz and the state has been good, with the
company receiving the first instalment of state-aid for its investment in the production of a
new model a few days ago. Brouiller said the instalment was EUR 12m, which represent 30%
of the aid planned to be given to Revoz in 2005.
Revoz has decided to continue with night-shifts until the end the first quarter of 2006. As the
company is becoming more involved in the production of it its car parts, new jobs were
created in the Revoz factory, he said.
Meanwhile, Brouiller would not make forecasts regarding the production volumes of the X44
- the successor the popular Twingo model - saying the primary goal was to make a profit.
Aerodrom Ljubljana Plans 6% Increase in Revenues, Passengers in 2006
The operator of Ljubljana International Airport expects operating revenues to increase by 6%
to SIT 6.6bn (EUR 27.55m) next year
The operator of Ljubljana International Airport expects operating revenues to increase by 6%
to SIT 6.6bn (EUR 27.55m) next year, Aerodrom Ljubljana said on Wednesday, 14
December. It moreover anticipates the number of passengers to rise next year and plans to
make investments of SIT 2.4bn (EUR 10m).
20
The company's supervisory board, which reviewed the figures on Tuesday, 13 December,
envisages that the number of passengers will go up 6% to 1,280,000 in 2006. They moreover
plan 40,192 flights (arrivals and departures), up 2% over this year, and a 3% increase in heavy
cargo (12,052 tons) transport.
Setting aside SIT 2.4bn (EUR 10m) for investment, the company intends to build an extension
of the main runway and a new terminal. It will also continue to purchase land around the
airport.
In the January-September period, Aerodrom Ljubljana generated SIT 4.78bn (EUR 19.95m)
in operating revenues, which is 14% more than in the same period last year. The operating
profit in the first nine months stood at SIT 1.64bn (EUR 6.84m), topping last year's by 22%.
In the same period, the company also saw a surge in the number of passengers and flights.
There were as many as 29,392 flights, up 10% year-on-year, and 956,141 passengers, up 18%
over the year before.
Prevent Announces Layoffs
Car-seat cover maker Prevent plans to reduce the number of its employees in Slovenia in the
coming years, as some of its programmes are to be outsourced
Car-seat cover maker Prevent plans to reduce the number of its employees in Slovenia in the
coming years, as some of its programmes are to be outsourced, the company said at a news
conference on Wednesday, 14 December.
Prevent has come to the conclusion that handling its business exclusively in Slovenia was no
longer feasible, Prevent chairman Joze Kozmus said.
Kozmus pointed to substantial changes in the car industry, providing the example of
Volkswagen, its biggest partner, which plans to let go 14,000 of its workers.
"Cost-cutting has become a trend in the entire car industry and if we wish to stay a supplier
we are forced to follow suit," Prevent CEO Joze Kozmus explained, adding that the company
plans to cut 15% of its jobs in 2007 and a further 15% in 2008.
According to Kozmus, the situation is further aggravated by the general collapse of the textile
industry in Slovenia.
Prevents plans to move some of its most basic lines of production to Morocco, BosniaHerzegovina and Moldova.
Prevent Global is expected to finish the year with a profit of SIT 800m (EUR 3.3m), which is
slightly more than in 2004.
Triglav Acquires 61.21% of Slovenijales
Slovenijales said that both Triglav companies now have 167,474 shares, with their public
offer on buying additional Slovenijales shares, which took place between 19 October and 16
November, added 4.32% of Slovenijales to their portfolio
Slovenia's largest insurer Zavarovalnica Triglav informed the management of furniture trader
Slovenijales on Tuesday, 13 December that the insurer and its subsidiary Financna druzba
Triglav together own 61.21% of Slovenijales.
Slovenijales said on Wednesday, 14 December that both Triglav companies now have
167,474 shares, with their public offer on buying additional Slovenijales shares, which took
place between 19 October and 16 November, added 4.32% of Slovenijales to their portfolio.
The offer of SIT 12,500 per share (EUR 52.17) - the current market price of Slovenijales is
SIT 11,000 (EUR 45.91) - was declared successful by the Securities Market Agency on 22
November.
21
Iskra Avtoelektrika Publishes All-Cash Takeover Bid for Iskra
Iskra Avtoelektrika, a manufacturer of electronic components for the car industry, has
published a hostile all-cash takeover bid for the Ljubljana-based electronics group Iskra, its
largest single owner
Iskra Avtoelektrika, a manufacturer of electronic components for the car industry, has
published a hostile all-cash takeover bid for the Ljubljana-based electronics group Iskra, its
largest single owner.
Iskra Avtoelektrika intends to acquire all Iskra shares, but the 0.33% which it already holds.
Iskra, meanwhile, holds a 24.29% share in Iskra Avtoelektrika.
The publicly quoted Iskra Avtoelektrika is offering SIT 1,044 (EUR 4.36) per share, valuing
Iskra at just over SIT 7bn (EUR 29.4m).
The Sempeter-based company will consider its bid, published on Thursday, 15 December and
closing on 12 January at noon, successful if it manages to acquire a 51% stake, it said in a
press release.
Iskra Avtoelektrika has eleven production subsidiaries in Slovenia and abroad, as well as 6
trade branches. In the first nine months of the year is saw sales increase 9% to SIT 28bn (EUR
116.9bn), with net profits stagnant at SIT 252m (EUR 1.05m).
Meanwhile, Iskra posted a net profit of SIT 302m (EUR 1.26m) in 2004, on sales of SIT
22.9bn (EUR 95.59m).
Krka to Take Up 500 Additional Workers, Chief Exec Says
The majority of the new openings will be in Krka's marketing, sales, research and
development departments abroad
Drug maker Krka plans to increase its workforce by 500, bringing the total number of
employees to 5,700 in 2006, the company's CEO Joze Colaric told the daily Vecer on
Thursday, 15 December.
The majority of the new openings will be in Krka's marketing, sales, research and
development departments abroad, he explained for the Maribor-based daily.
However, "we will also employ people in Slovenia in the same departments, as we plan to
expand our capacity", he added.
According to Colaric, the company will create a net profit of SIT 20bn (EUR 83.47m) this
year, while it plans double-digit growth in 2006, pushing its net profit to SIT 22.5bn (EUR
93.9m).
The Novo mesto-based company also plans takeovers, mainly in Western Europe, where sales
have been exceptional, although it is also eyeing potential Central and Eastern European
targets, he added.
"We are a financially strong company with an extensive array of drugs. Therefore we see no
need for strategic partnerships", Colaric told Vecer.
The company's key markets are Russia, Poland, Western Europe and Croatia. Colaric
furthermore believes that Russia and Western Europe have the largest potential for growth in
the generic drugs market.
According to Colaric, analysts predict that the generic drugs market will grow at a rate of 10%
in the next few years, while Krka will grow at an even faster rate.
He added that Krka's current production capacity of six billion pills a year is not enough.
According to him, plans are to increase that to nine million in a relatively short period of time.
Mercator Buys Back Own Shares From Triglav
Retailer Mercator repurchased 68,000 shares that it deposited with insurer Zavarovalnica
Triglav back in 2000
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Retailer Mercator repurchased 68,000 shares that it deposited with insurer Zavarovalnica
Triglav back in 2000, the company said on Thursday, 15 December.
The SIT 1.25bn (EUR 5.21m) deal was carried out in accordance with the repurchase
agreement that Slovenia's largest grocer and largest insurer signed back in 2000.
The supervisory board of Triglav approved the resale of the shares - making up 2.1% of all
shares in Mercator - on Wednesday, 14 December after getting the nod from the Finance
Ministry (the insurer is in state hands).
Under the contract from 2000, Mercator bought back the shares at a price of about SIT 18,000
(EUR 75.13) per share, which is more than their price five years ago but less than half of what
Mercator is currently worth on the stock market.
The low price prompted the Triglav supervisory board to ask the management to seek the
"legal opinion of certain state institutions" before clearing the deal.
Dnevnik Chairman Gets Contract Extension
The supervisory board of newspaper outlet Dnevnik appointed incumbent company chairman
Branko Pavlin for another five years in office
The supervisory board of newspaper outlet Dnevnik appointed incumbent company chairman
Branko Pavlin for another five years in office, the company said on Thursday, 15 December.
The supervisors also examined the company's current operations and plans for 2006. In the
first nine months of 2005, the company generated SIT 5.35bn (EUR 22.35m) in revenues, 2%
above plans, the company said.
In the same period, Dnevnik's pre-tax profits amounted to SIT 740m (EUR 3.08m), with the
biggest growth coming from marketing and sales, the company said.
According to a press release from Dnevnik, the company plans to see 9% growth in net sales
income next year.
Saturnus Embalaza AGM to Decide on Delisting from LJSE
The majority owner (99.17%) of Saturnus Embalaza, the Austrian company Vogel&Noot
Verpackungstechnik, will offer to buy out the stakes of those who would oppose the delisting
Shareholders of Slovenian packaging maker Saturnus Embalaza will decide at their 19
January AGM whether the company should withdraw from the stock market, the company
said on Friday, 16 December.
The majority owner (99.17%) of Saturnus Embalaza, the Austrian company Vogel&Noot
Verpackungstechnik, will offer to buy out the stakes of those who would oppose the delisting.
The move has to be confirmed by 90% of the owners, while the possible opponents will be
offered SIT 43,000 (EUR 179) a share, the same amount as the Austrians paid during their
recent takeover.
During the 3 October-30 November takeover bid the Austrian company acquired 33,692
shares (39.21% of issue). Outside the bid, Vogel&Noot got an additional 51,526 shares
(59.96%), currently owning over 99% of Saturnus Embalaza.
The AGM is also expected to accept the resignation by supervisory board members Andrej
Cec and Vito Verovsek. Saturnus Embalaza management has put forward Benjamin Kosat
and Peter Gasser as the new supervisors, to begin their term on 19 January.
23
SLOVENIA IN BRIEF
Minister Mate Visits New Crisis Management Centre in Vienna
Interior Minister Dragutin Mate visited Vienna on Monday, 12 December, responding to an
invitation by his Austria counterpart Liese Prokop. The pair took part in an opening ceremony
of the Centre for Intervention and Crisis Coordination at the Austrian Interior Ministry.
Damijan Gets Green Light from Economics Committee
The parliamentary economics committee has approved the nomination of Joze P. Damijan for
a post of a minister without portfolio for the implementation of Slovenia's development
strategy. If he is appointed by parliament on 20 December, he will take over as of 2006.
Rupel: EU-Sponsored Border Talks with Croatia to Begin in January
FM Dimitrij Rupel announced that talks on the state border between Slovenia and Croatia
would start with the help of the EU in January, as he answered an opposition question at a
plenary session of the parliament on Wednesday, 14 December.
National Geographic to Be Published in Slovenian as of May 2006
A deal on a Slovenian version of National Geographic was signed in Washington on
Thursday, 15 December by the Ljubljana publishing house Rokus and the National
Geographic Society. Rokus' director Rok Kvaternik told STA that the first Slovenian edition
of the magazine is to be published in May 2006.
Health Ministry and WHO Sign Cooperation Agreement
The Health Ministry and the Regional Office for Europe of the World Health Organisation
(WHO) have signed a cooperation agreement for the 2006-2007 period. The deal was signed
in Ljubljana on Friday, 16 December by Minister Andrej Brucan and the head of the WHO's
office for Europe Marc Danzon, who began a two-day visit in Slovenia on 15 December.
Flat Tax Can't Be Part of Social Agreement, Trade Unions Say
The flat tax presents the biggest obstacle to reaching a social agreement for the 2006-2009
period, representatives of the trade unions stressed on Friday, 16 December. The unions, who
held talks with government officials at a session of the Economic and Social Council on
Friday, 16 December, said that, in spite of their position that the flat tax is completely
unacceptable, the government still refuses to back down.
Foreign Ministry Protests Croatian Fishing Zone Borders
The Slovenian Foreign Ministry handed on Friday, 16 December a note of protest to the
Croatian Embassy in Ljubljana over Croatia's decision to extend the borders of its fishing
zone in the Adriatic to the middle of the disputed Bay of Piran.
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