Kranj, 16 July 2010 – Yesterday, on 15 July 2010, the 16th regular Supervisory Board meeting  of Sava d.d. was held. The Supervisory  Board became acquainted with a survey  of measures that aim at protection of Sava’s investment in Merkur, the status of receivables that due from Merfin, and gave its support to the activities performed by the Board of Management of Sava d.d. The Supervisory Board was presented a regular monthly report about the operations of the Sava Group in the period January-June.

The Board of Management of Sava d.d. presented the Supervisory Board a Report about the performed and planned measures for securing the interests of Sava d.d. with regard to the investment in Merkur d.d., and the status of receivables that Sava shows to its majority owner Merfin d.o.o.  The Board of Management of Sava d.d. repeatedly pointed out that Sava’s investment in Merkur would be most worth if Merkur continued its operations.

In the period from the previous – June – meeting until this Supervisory Board meeting, significant strategic shifts were made in Merkur d.d. in order to assure the integrity and further business of Merkur, which enables Sava’s investment value in this Kranj-based trading company to be optimised. The change in the company management means that one of the basic conditions for rehabilitation of the company has been fulfilled, whereas admitting Sava in the Supervisory Board of Merkur d.d., with the banks’ representatives, will facilitate Sava to actively supervise the future operations of this business system.

The Board of Management states that it will prepare a further strategy for Sava’s investment  in Merkur on the basis of a re-examination of transactions, which presently is being carried out in Merkur by an auditing company, as well as on the basis of Merkur’s  audited financial statements, and   Merkur’s financial consolidation programme. The Supervisory Board of Sava d.d. estimated that the activities by Sava’s Board of Management so far have been efficiently performed and it gave its support to the plan of further, intended measures for securing Sava’s interests.

In the meeting, the Supervisory Board of Sava d.d.  was informed about the regular monthly report about the operations of the Sava Group in the first half-year. The Board of Management of Sava d.d. reported that impairments of investment in Merkur would have a significant negative impact on  semi-annual result, which was due to the situation in Merkur;  it estimated, however, that positive business trends of all Sava’s divisions, in particular Rubber Manufacturing, in the second half-year would further strengthen in comparison with the first quarter.

Sava d.d.
Corporate Communications