ZAGREB, Dec 18 (Hina) - Austria's publishing company Styria has become the majority owner of Croatia's highest-circulation daily 'Vecernji List' following a decision by the Commercial Court to withdraw a temporary ban on the
management of the daily's shares by Caritas Investments, the daily's Supervisory Committee confirmed on Monday.
ZAGREB, Dec 18 (Hina) - Austria's publishing company Styria has
become the majority owner of Croatia's highest-circulation daily
'Vecernji List' following a decision by the Commercial Court to
withdraw a temporary ban on the management of the daily's shares by
Caritas Investments, the daily's Supervisory Committee confirmed
on Monday. #L#
In line with the court decision, adopted on Friday, December 15, the
shares of Vecernji List have been transferred to the company
Hrvatska-Styria GmbH from Graz, which has become the daily's
majority owner.
The Supervisory Committee, chaired by Marijan Kostrencic, today
elected Styria's general director Horst Pirker vice-chairman.
The Committee discussed business reports for the first nine months
of this year and announced a session of the daily's assembly for
early February next year. Discussed at the assembly session will be
Styria's further investments in the daily, reads a statement signed
by Kostrencic.
The Commercial Court made the decision to withdraw the temporary
ban on the management of Vecernji List shares on the day it received
a request for that measure from the Croatian Pension Insurance
Institute (HZMO).
In April this year, Styria announced it would buy Vecernji List for
DM 26 million but in late July it said it was giving up the
acquisition as the Commercial Court in May had imposed a temporary
ban on the sale of the daily's shares, at HZMO's request.
A court representative then said the purpose of the ban was to
prevent possible damage which could be caused by the further
possible sale of the daily's shares.
In late 1997 the HZMO sold the majority package of profitable shares
of Vecernji List to Caritas Fund. The purchase and sale was carried
out hastily during Christmas and New Year holidays. Caritas Fund,
whose owners were not known at the time, had been registered on the
Virgin Islands just several days before the deal was concluded.
This led to speculations that the transaction was carried out on
behalf of the then ruling Croatian Democratic Union (HDZ).
Following a probe by a parliamentary commission, two Croatian
businessmen made known they were the owners of Caritas Fund, that
is, of the daily. At the end of the investigation, the commission
established that the sale of the daily to Caritas Fund was not
illegal but that there had been numerous irregularities in the sale
procedure.
Styria representatives met Prime Minister Ivica Racan again in
August. Later that month, Vice Premier Slavko Linic said an
agreement had been reached with the daily's owner Caritas Fund on
the transfer of the daily to Styria. At a session on August 31, the
Government suggested that the HZMO seek the withdrawal of the
temporary ban, which it did in mid-October.
According to an agreement, which the Croatian government signed
with Styria in early December, the Austrian investor was guaranteed
compensation in case the court ruled that the HZMO should become the
owner of the shares, at the time still owned by Caritas Fund.
The agreement also stipulated that Styria's entrance would be
respected and that any obstacle to its entrance would be removed as
well as that the HZMO would receive compensation for investments
made regarding the purchase of Caritas Fund. The agreement also
guaranteed security for Styria and its future investments.
(hina) rml