The Slovenian government says it has signed a Share Purchase and Sale Agreement with German investment fund 4K KNDNS, a unit of 4K Invest, concerning the sale of a 91.58% stake in Adria Airways (JP, Ljubljana). The stake represents the entire shareholding held by state entities Slovenia Sovereign Holding (SDH), the Bank Asset Management Company (DUTB), and the PDP restructuring firm.

Under the terms of deal, government will inject EUR3.1 million (USD3.39 million) into the carrier while 4K Invest will contribute EUR1 million (USD1.08 million). The Germans will pay EUR100,000 (USD108,720) for Adria. Slovenia expects the capital increase and the sale process to be completed in the following few months though this is dependent on the completion of all regulatory approvals.

As a turnaround specialist, 4K Invest has been tasked with ensuring Adria becomes a sustainable, profitable operation in the longrun. The firm has pledged to maintain Adria 'hybrid carrier' business model while focussing on the Slovenian, Albanian, Kosovo, Macedonian and now the Estonian markets. More aircraft will be added to help sustain international growth plans.

"4K Invest, one of the leading turnaround specialist in Europe, in addition to the paying-up of capital, will provide for the viability and the development of the Slovenian national airliner, and enable other long-term positive impacts," SDH said.

Last year, SDH announced it would completely dispose of Adria's MRO division, Adria Airways Tehnika (AA Tehnika), to Poland's Linetech Holding S.A. for an undisclosed sum.