On the today’s Assembly meeting the shareholders of Elka d.d. have approved with 99,44% votes the contract on the entry of objects and rights between Elka d.d. and the newly founded affiliate company Elka kabeli d.o.o., increasing thus the equity of Elka kabeli d.o.o. to 396,4 millions of kunas.  This procedure has set the preconditions for the beginning of implementation of the recommendation of the investment and consulting house CAIB concerning the sale of the 100 % package of Elka’s affiliate company Elka kabeli in an international contest. The company Elka kabeli d.o.o., in the 100-percent ownership of Elka d.d., was founded by the end of the last year according to the Decision of the Supervisory Board of Elka d.d., to which company have been transferred complete cable operations of Elka d.d. and the property related to the production of cables. On the day of its foundation Elka kabeli d.o.o. was free of any financial liabilities. From the next week on, CAIB will start contacting the potential investors in relation to the possible purchase of the 100-percent share of the company Elka kabeli d.o.o. After paying a deposit and signing of a Confidentiality contract, all interested buyers shall be able to take over the information memorandum with a detailed description of operative and financial indicators of Elka’s cable operations, and information on the cable industry and the general macro-economic environment in Croatia. The potential investors who would express their wish for further participation in the contest after having taken over the information memorandum, shall be enabled to make a three-days due dilligence of Elka kabeli d.o.o., during which period they shall have access to data room, infrastructure, and the possibility of discussions with the management of Elka kabeli d.o.o. After a completed due dilligence, the potential investors shall be invited to submit their final binding offers, closing with the end of April. The entire process of sale should be terminated in May, after the Assembly of Elka d.d., on which occasion the shareholders of Elka d.d. should make a decision on the sale of Elka kabeli d.o.o. to the best bidder.

Contact person:
David Rys
President of the Supervisory Board of Elka d.d.
Tel. +3851 1 4886 100
Fax + 385 1 4886 111