Zreče, 20 October (STA) - Tool and automotive parts manufacturer Unior requires an estimated EUR 47 million in fresh capital to ensure its long-term viability, according to a business review conducted by audit firm KPMG, the business news portal Finance reported.
The assessment, presented to Unior's supervisors last Friday, concluded that a significant financial restructuring is imperative alongside the company's ongoing operational overhaul. The company has since confirmed that if a capital increase is pursued, shareholders will ultimately decide on the final amount and method at a future general meeting.
Two primary paths are being considered to secure the funds: a recapitalisation from existing or new investors, or an outright sale of the company to a buyer who could settle at least a portion of its outstanding loans, Finance reported. State asset custodian SSH holds a 40% stake in Unior, with the state-owned KAD fund holding another 5.5%.
Chief supervisor Katja Potočar described the financial and business restructuring as "essential," but added that KPMG's projections show Unior could become a successful enterprise again if the recovery plan is implemented effectively.
The urgency is underscored by the company's debt burden. At the end of June, the Unior group's financial liabilities stood at EUR 105.37 million. While this figure is an 11.5% reduction year-on-year, the liabilities of the parent company, Unior, have increased by almost 4% to EUR 99.52 million.
The challenges persist despite significant restructuring efforts already undertaken. Unior has sold its tourism division, a Serbian subsidiary, closed its plant in the village of Stari Trg in the south-east, and discontinued its machine-building programme.
In the first half of this year, the Unior group reported a net loss of EUR 2.8 million, after it had recorded EUR 4.6 million in net profit in the same period last year. Sales revenue also fell by 11.5% year-on-year to EUR 118.3 million.
The need for a capital injection was first flagged in April, when CEO Robert Vuga stated that Unior could not develop long-term without fresh capital, adding that he believed the company's strong market position made it an interesting investment.
