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GOVT FORMULATES BILLS ON PRIVATISATION OF INA, HEP

ZAGREB, Feb 21 (Hina) - Under the bills on the privatisation of the Croatian Oil Industry (INA) and the Croatian Power Supply (HEP), forwarded into the first parliamentary reading by the government on Thursday, part of the companies' shares will be sold to a strategic partner and offered on the stock market, seven percent will be given to soldiers free of charge, and another seven percent will be sold to the companies' employees under favourable conditions. Under the bill on the privatisation of INA, the strategic partner would be offered 25% plus one share; at least another 15% of shares would be offered on the stock market, while the sale of the remaining part of shares would be decided about by the government, in line with market conditions. The government would also decide about the schedule and dynamics of the privatisation process. The bill on the privatisation of HEP envisages the sale of company shares
ZAGREB, Feb 21 (Hina) - Under the bills on the privatisation of the Croatian Oil Industry (INA) and the Croatian Power Supply (HEP), forwarded into the first parliamentary reading by the government on Thursday, part of the companies' shares will be sold to a strategic partner and offered on the stock market, seven percent will be given to soldiers free of charge, and another seven percent will be sold to the companies' employees under favourable conditions. Under the bill on the privatisation of INA, the strategic partner would be offered 25% plus one share; at least another 15% of shares would be offered on the stock market, while the sale of the remaining part of shares would be decided about by the government, in line with market conditions. The government would also decide about the schedule and dynamics of the privatisation process. The bill on the privatisation of HEP envisages the sale of company shares on the stock market. Under the bill, at least 15% of shares would be sold this way, however, Deputy Economy Minister Maja Brinar said 25% of the shares would be privatised this way. The bills, which have been forwarded into the first parliamentary reading, envisage both companies giving Croatian soldiers seven percent of their shares free of charge, while another seven percent would be sold to the companies' employees under favourable conditions. Under the bills, the state would keep the ownership of strategic infrastructure installations - gas and oil transport (INA) and the transmission and distribution network (HEP). Deputy Prime Minister Goran Granic said the state's ownership of the main infrastructure installations and the right to manage them, upon which market development depends, was protected by law. This refers to the transport of gas, oil (JANAF), HEP's transmission and distribution network, and an independent power market operator, which would continue to be owned by the state. We propose that the state continue to be the owner of at least 51% of those key infrastructure installations and that the parliament make a decision on their privatisation once conditions are met, Granic said. (hina) sb rml

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