ERJ staff report (DS)
Kranj, Serbia -- At its 28th regular meeting on 27 September 2011, the Supervisory Board of Sava dd unanimously supported the restructuring strategy of the Sava Group. The board has appealed to banks shareholders and others to support the plan for divestments and other measures. Precise details on divestments were not given in the plan, but will be released in due course.
Sava is a diversified holding company which grew out of rubber processing activities in Serbia, but now has interests in tourism, finance, heavy engineering and other areas.
Sava said in a statement, "The key operations, in particular the largest ones - Rubber Manufacturing and Tourism - operate in a stable manner and generate profit from operations; however, in the given circumstances, Sava d.d. does not have sufficient assets for financing all investments necessary for further development of operations in order to create conditions for their competitive position over a longer period of time "
When presenting the strategy of business-financial restructuring, Matej Narat, MSc, President of the Management Board of Sava d.d., emphasised: "We wish to create the conditions for a long-term growth and development of Sava. We are designing a new, renewed Sava, which will operate in a more stable and efficient manner, while its future image will differ much from the present one."
The overall plan has three stages. The initial phase is underway and will continue to the end of 2011. This is to take short term measures on restructuring debts and agreeing new financial arrangements to keep the company going. A second element is the strategic merging of various tourism-related activities, which will continue into 2012.
The second phase in 2012-2014 period will involve as-yet unspecified divestments. The third phase in the 2013 - 2014 period will continue divistments, but will in addition focus on re-investing in the retained businesses.
After being restructured, Sava d.d. will be a financial investor, which is listed on the stock exchange and generates profit from the key activities as well as from acquisitions and disposals of investments.
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Press release from Sava