P&S CAPITAL and Erste Group Bank successfully advised on equity capital increase of Paloma

December 21, 2016 – Paloma, Slovenia and ECO-INVEST, Slovakia have successfully finished equity capital increase of Paloma. in the amount of €18.2m at the price of EUR 4.01 per share. Equity capital increase procedure has been conducted by Erste Group Bank AG and P&S CAPITAL, which have served as financial advisors to Paloma.

The management of Paloma decided to initiate the process of a capital increase in order to modernize production facilities, increase operating capacity; take advantage of current and future market opportunities and remove current bottlenecks, thereby enhancing efficiency and financial results. As a result, the recapitalization process of Paloma offers the best opportunity to increase value for shareholders and to improve Paloma’s financial performance, which in turn will help to ensure a stable future for the company.

The process was run in a professional and competitive manner and so it has resulted in the best price for the shares. ECO-INVEST is capable and committed to investing into the development of Paloma due to its long history in the production of hygienic paper products and its deep understanding of the pulp and paper industry in the region.

Following the successful completion of the process, the financial and strategic support of ECO-INVEST will allow Paloma to finalize the restructuring of the company and to complete its strategic investment programme. There are urgent investments needed in production capacity and energy efficiency as well as the modernization of processes and equipment to improve working conditions. As a result, Paloma will move closer to its goal of being the leading manufacturer and provider of hygienic paper products in the Adriatic region and beyond. As Paloma is one of the biggest companies in the region this will also benefit the employees and business partners of Paloma as well as the local community.