Together with its Slovenian partner Eurovek d.o.o., the Insulating Division of RHI with its lead company Heraklith AG has held participating interests in the Slovenian stone wool producer Termo d.d. since 1997. In December 2004, Heraklith signed a contract regarding the acquisition of a stake of initially 50% in its partner Eurovek, which also provided for a complete takeover of this engineering company by the year 2008. With the acquisition of 50% of the Eurovek shares, Heraklith indirectly also acquired further shares in Termo; Heraklith’s share in Termo thus rose to over 60%.
As published on June 30, 2005, Heraklith AG and its Slovenian investment Global B&C d.d.o. informed the Slovenian authorities in accordance with §15 of the Slovenian Takeover Act about their intention to make a public takeover bid for Termo shares, since Heraklith and its 50% subsidiary Eurovek directly and indirectly already hold nearly 75% in Termo. Heraklith got approval from the authorities today and will publish the offer in the local media on July 20, 2005. The duration of this offer is 28 days until August 16, 2005, the quoted price amounts to SIT 8.000,- per each Termo share.
A final agreement regarding Heraklith’s complete acquisition of Eurovek, effective from the end of 2005, has now been reached with the 50% co-owner of Eurovek, Janez Deželak. At the same time, differences that still existed with respect to the future management of Termo and Eurovek and the orientation of these Slovenian companies were settled in consensually.
With the complete takeover of Eurovek, Heraklith will indirectly also acquire further shares in Termo and its investments Termika in Croatia and Izomat in Slovakia. Heraklith’s stake in Termo will thus rise to over 80%. Termo produces insulating materials made of stone wool and is market leader in Slovenia. Moreover, 75% of its production is exported and sold internationally, especially in the area “technical insulation”. Termo’s revenue exceeds EUR 55 million; its EBIT margin currently amounts to more than 7%.
With the transaction which has now been agreed upon, Heraklith has completed the reorganization of the group as the leading supplier of know-how in and insulating materials made of stone wool in Central and Eastern Europe. This is another decisive step in the expansion in these growth markets, especially in Russia, where Eurovek is currently upgrading a number of stone wool factories.