Ljubljana, 06 July (STA) - Kylin Prime Group, a Chinese-backed fund registered in Ireland, is looking to acquire a majority stake in Hranilnica Lon, a small savings bank that is in the process of transformation into a bank. According to business newspaper Finance, the goal of the investors is to obtain a banking licence for the EU.
Kylin Prime Group, which is a part of Kylin Prime Fund, acquired a 17.28% share in Lon in a recapitalisation process in early June, and on Friday it asked the central bank for clearance to acquire a majority stake in the savings bank.
The fund would like to acquire a qualified share. It wants at least 50% of equity and voting rights.
Kylin Prime Group said it was a global investor who has "recognised Slovenia as a long-term investment opportunity" and assessed that it could help Lon develop into a "technologically advanced financial institution".
Kylin Prime Group wants to become a long-term strategic owner of Lon and increase its market share in the coming years.
Lon, which has been waiting for permission to transform into a bank since spring, underwent a recapitalisation in 2016 with which six shareholders raised their stakes above 5%. In May, another capital increase was carried out featuring the Irish fund.
The savings bank accumulated a EUR 2.53m loss last year because of an ill-fated investment in an office building. Without the project, it would have posted EUR 146,000 in operating profit. The loss will be carried over.
In the first quarter of this year, Lon's net operating profit reached EUR 270,000, which is more than 50% of the plan for the year. Net revenue increased by almost 8% year-on-year.
Kylin Prime Group manages funds and other assets and is investing mainly in new technologies and innovation.