Euris Interested in Croatian TLM-TVP

The Austrian Hypo Group Alpe Adria wants to sell the Croatian aluminum roller mill TLM-TVP. Besides the Swiss MTC (Montana Tech Components), which is partly owned by the Austrian investor Michael Tojner, the Vienna-based aluminum trader Euris is a potential buyer. The sale process is dragging on. Initially, Hypo Group intended to conclude the sale until August.

Now, the planned sale of TLM by Austrian Hypo Group Alpe Adria must be re-started. In February, MTC and Hypo Group already signed the deal. According to Hypo Group, both parties agreed on a re-start, after several sale conditions could not be met. Tojner is said to want to put pressure on Hypo Group in order to reach a lower sale price. Hypo Group´s statement: “We will not sell at any price.”

For Hypo Group, TLM is a problem child as the aluminum company has high legacy assets. After the purchase in 2007, Hypo Group promised to make investments of € 75m. Up to now, above the half of the investment volume has been realized.

TLM-TVP runs an aluminum roller plant in Sibenik. In 2010, the aluminum manufacturer achieved sales of € 125m and employed 500 workers. Five factories are located in Croatia, one in Poland. Both companies are among the largest industrial producers in Croatia.With an interest of 84%, the major shareholder is the Austrian nationalized bank Hypo Group Alpe Adria. Already since spring 2011, Hypo Group has been looking for an investor, as the bank must downsize drastically.

Montana Tech Components AG is a technology and innovation group of manufacturing companies focussing on selected key technologies in three divisions:Aerospace & Industrial Components, Metal Tech and  Energy Storage. The group employs about 2,800 workers at 21 business locations worldwide. Sales amount to € 400m.

Euris is owned by the Macedonian entrepreneur Marko Pejcinoski, who confirmed his willingness to purchase TLM-TVP. However, Pejcinoski said not to be informed of a re-start of the bidding process. According to the entrepreneur, TLM delivers goods worth € 50m to Euris each year. Pejcinoski is said to be willing to invest € 25m in TLM. Hypo Group did not comment the current status of the sale. „We are talking with every potential buyer.“ a spokesperson said.