ZAGREB, Sept 29 (Hina) - Trading in a new kind of securities, called Entitlements, for the allocation of some shares from the Croatian Privatisation Fund (HFP) portfolio, intended for covering the Ministry of Public Works' capital
spending, will start at the Varazdin Stock Exchange on Monday. Entitlements are securities granted to constructors who have participated in the process of reconstruction. Shares which will be allocated from the HFP portfolio at public auctions will be purchased (exchanged) exclusively with Entitlements. The shares will be offered at a starting price of 25 percent of the nominal price. The first auction at which it will be possible to exchange Entitlements for shares, to be offered by the HFP, is expected in mid-October, said Josip Galinec, the director of ZG Broker, which the Ministry has selected to carry out the project. Of a total of
ZAGREB, Sept 29 (Hina) - Trading in a new kind of securities, called
Entitlements, for the allocation of some shares from the Croatian
Privatisation Fund (HFP) portfolio, intended for covering the
Ministry of Public Works' capital spending, will start at the
Varazdin Stock Exchange on Monday.
Entitlements are securities granted to constructors who have
participated in the process of reconstruction.
Shares which will be allocated from the HFP portfolio at public
auctions will be purchased (exchanged) exclusively with
Entitlements. The shares will be offered at a starting price of 25
percent of the nominal price.
The first auction at which it will be possible to exchange
Entitlements for shares, to be offered by the HFP, is expected in
mid-October, said Josip Galinec, the director of ZG Broker, which
the Ministry has selected to carry out the project.
Of a total of 1.6 billion kuna of the nominal value of shares which
will be offered from the HFP portfolio, the current list includes
152 companies and shares with a nominal value of 860 million kuna.
The list includes, among else, Tankerska Plovidba, Turisthotel
Zadar, Koncar Elektroindustrija, Istraturist and Jadranturist.
The list should be accepted by the HFP managing board.
"We have a relatively good starting portfolio," said the Minister
of Public Works, Reconstruction and Construction, Radimir Cacic.
The total value of Entitlements is 400 million kuna (the total
number of Entitlements is 400 million and each Entitlement has a
nominal value of one kuna).
The value of Entitlements a constructor will be allocated equals
the amount of his mature claims toward the Ministry of Public Works,
Reconstruction and Construction, for which the payment in the form
of the transfer of shares has been agreed.
Constructors will be able to exchange their Entitlements at public
auctions for the shares of offered companies or sell them to
interested buyers.
Investors who will purchase Entitlements may be attracted by the
fact that the obligation of the public announcement of purchase
will not be applied in the exchange of Entitlements for shares.
(hina) jn rml