GOVT APPROVES SALE OF TWO HOTEL COMPANIES TO CRO, SPANISH BIDDERS

ZAGREB, Sept 6 (Hina) - The majority block of shares of the Hotel Croatia from Cavtat will be sold to the Porec-based Plava Laguna hotel company, whereas the Spanish company Endicott Compania de Turismo from Palma de Mallorca will become the majority owner of the Hoteli Cavtat company. The Croatian government was deciding on Thursday between the bids of Plava Laguna and International Investment from Malta for a 62.4% block of shares of the Hotel Croatia Cavtat, and between two other offers, submitted by businessman Goran Strok and Endicott Companie de Turismo and its strategic partner, tour operator Thomas Cook, for a 71.45% package in the Hoteli Cavtat company. Plava Laguna, which is owned by the Luksic Group, offered 105 million kuna (around USD 12.353 million), to be paid immediately, and DEM10 million worth of investments, while the Maltese company offered 105 million kuna, to be paid over a period of 10 years, and investments worth DEM 15-20 million. Acting in line with a recommendation of its most senior members, the government accepted the offer of Plava Laguna as the most favourable, with some annexes to be adopted. Businessman Goran Strok offered 54.5 million kuna (USD 6.412 million) and investments worth seven million euros by 2010 for the Hoteli Cavtat. The Spanish bidder and its strategic partner Thomas Cook offered 54.85 million kuna (around USD 6.453 million), to be paid within 15 days from the signing of the contract. The company also offered 5.8 million-euro-worth investments, to be made by 2006 in the hotels' infrastructure alone. The most senior government members and the government decided that this offer was better than Strok's. (hina) sb rml