ZAGREB, October 31, 2018 - The oil company INA and the Prvo Plinarsko Društvo gas supplier have signed an agreement with the Restructuring and Sales Centre (CERP) for the recapitalisation of the Petrokemija artificial fertiliser manufacturer, paying a total of 300 million kuna of fresh capital for the Kutina-based company, which will make them its majority owners, the two companies said in a statement on Wednesday.
"The investors INA and PPD have signed with CERP, the representative of the Republic of Croatia, an agreement on Petrokemija's recapitalisation. The two companies have paid a total of 300 million kuna for 30 million Petrokemija shares, each giving 150 million kuna, which will make them Petrokemija's majority owners, with a stake of more than 50% and the related management rights," INA and PPD said in the joint statement.
The two companies have carried out the transaction through a company they have jointly set up - Terra Mineralna Gnojiva d.d. (TGM), which will operate in line with the signed shareholders' agreement.
The latest developments have prevented the company's bankruptcy and the decision was unanimously supported by representatives of the two biggest shareholders on INA's Supervisory Board, the statement said.
"The purpose of the investment is to ensure the continuation and development of artificial fertiliser production at Petrokemija. The partners will cooperate in good faith and make effort to enable Petrokemija to continue with its activities. INA and PPD will therefore focus on improving Petrokemija's current financial situation by improving its product portfolio, making its operating costs sustainable, refinancing inherited debts and further optimising the business process," the statement said.
It also quoted INA Management Board chair Sandor Fasimon as saying that INA had once again proven to be a stable and reliable partner to the company as well as the entire Croatian economy and local community.
Petrokemija on Monday published a public invitation to subscribe for a minimum 40 and a maximum 45 million new shares, whereby it plans to collect at least 400 and a maximum of 450 million kuna of fresh capital. The subscription for shares lasts until 4.30 pm, October 31.
Economy Minister Darko Horvat said on Wednesday that the recapitalisation of mineral fertiliser producer Petrokemija was successful. "This is a third attempt at recapitalisation or privatisation and I dare say that we've made it," Horvat said in response to questions from the press.
Horvat noted that the involvement of different government departments and Prime Minister Andrej Plenković's determination to bring this process to a close paved the way for the transformation of Petrokemija into a privately owned company.
Davor Žmegac, who until now was a member of the management board, replaced Đuro Popijač as chairman of the management board.
Read more about Petrokemija here.
