ZAGREB, May 10 (Hina) - The publishing of an invitation for potential strategic investors to demonstrate interest in the privatisation of 25 percent plus one share of the Croatian oil industry INA marks the start of the first stage of
the company's privatisation, which should be completed by the end of this year or the first quarter of next year, it was said at a news conference in the government on Friday.
ZAGREB, May 10 (Hina) - The publishing of an invitation for
potential strategic investors to demonstrate interest in the
privatisation of 25 percent plus one share of the Croatian oil
industry INA marks the start of the first stage of the company's
privatisation, which should be completed by the end of this year or
the first quarter of next year, it was said at a news conference in
the government on Friday. #L#
Deputy Prime Minister and chairman of INA's Supervisory Board,
Slavko Linic, stressed, among other things, the importance of the
social clause in the privatisation of the company, which employs
17,000 workers. We want privatisation to proceed in such way to keep
the number of employees at the current level and expect the number
of workers to grow with Ina's development, Linic said.
Economy Minister Hrvoje Vojkovic placed Ina's privatisation in the
context of liberalisation of the power market and integration into
the European Union. INA management board director Tomislav
Dragicevic said the main goal was the further development of the
company, which he said could be ensured by a strong strategic
partner, who would provide new investments and technological
development, and introduce the best international business
standards.
The government announced its invitation to strategic partners to
express interest in INA's privatisation in Friday's issue of the
Vjesnik daily and The Financial Times. The final deadline for the
demonstration of interest is May 31. Letters of interest are to be
forwarded to the government's advisors on INA's privatisation -
Deutsche Bank or PricewaterhouseCoopers.
Linic confirmed the estimate that the accounting value of Ina was
between 1.3 and 1.8 billion dollars. The company's market value
will be known once the offers arrive, he said. The market value will
also depend on the government's social bids and its wish for Ina to
develop as a regional company, as well as the amount of the
privatisation share.
Dragicevic said that the company had accumulated a loss of three
billion kuna (around EUR0.405 billion) in the past several years.
Last year, Ina made a profit of around 100 million US dollars, he
added.
After it considers the offers, the government will choose qualified
strategic investors who will be sent an information memorandum with
an invitation to carry out a detailed inspection into the company's
business (due diligence). The inspection should be carried out
during summer, after which binding offers will be submitted.
The sale of Ina shares is expected to be completed by the end of this
year or in the first quarter of next year.
The sale of 25 percent plus one share to a strategic partner is the
first stage of the company's privatisation. Under the law on Ina's
privatisation, seven percent of company shares will be given
Croatian soldiers free of charge, another seven percent will be
sold under favourable conditions to current and former employees,
while 15 percent will be offered in a public tender.
(hina) rml sb