ZAGREB, June 1 (Hina) - Croatia's Government is planning to sell the majority package, more than 50 percent of shares of the Croatian biggest insurance company "Croatia osiguranje" to the strategic investor in the firm. The exact
amount of the package will be defined in coming months and the entire process of the privatisation should be completed by the end of this year, the company's director-general, Suad Rizvanbegovic and members of the Croatian Government's commission for the privatisation of "Croatia osiguranje" said at Tuesday's news conference. On April 13 the Government set up this commission, and chose Chase Manhattan Bank, a leading world bank, for the advisor in this process. It is important to find a strategic partner that may raise the level of "Croatia osiguranje", help the firm to be modernised and improve the level of its services and products, Rizvan
ZAGREB, June 1 (Hina) - Croatia's Government is planning to sell the
majority package, more than 50 percent of shares of the Croatian
biggest insurance company "Croatia osiguranje" to the strategic
investor in the firm.
The exact amount of the package will be defined in coming months and
the entire process of the privatisation should be completed by the
end of this year, the company's director-general, Suad
Rizvanbegovic and members of the Croatian Government's commission
for the privatisation of "Croatia osiguranje" said at Tuesday's
news conference.
On April 13 the Government set up this commission, and chose Chase
Manhattan Bank, a leading world bank, for the advisor in this
process.
It is important to find a strategic partner that may raise the level
of "Croatia osiguranje", help the firm to be modernised and improve
the level of its services and products, Rizvanbegovic and the
Commission's head, Ivan Vrljic, told reporters.
We are not only interested in such partners from Europe. We want
big, eminent world firms that can help the "Croatia osiguranje"
firm and the insurance sector, said a member of the Commission,
Tomislav Matic.
A director in the Chase Manhattan Bank, Paul Sullivan said he
expected that the process of privatisation would finish by this
October.
Sullivan added that the first step would be a diagnosis of the
situation in the company and this would be carried out this month.
In the coming month contacts with a possible strategic partner are
likely to commence.
Asked about firms which own shares of the "Croatia osiguranje",
Matic informed reporters that no final standpoint on the portfolio
of this firm had been taken yet.
During the privatisation, the majority of shares is to be sold,
whereas the Government has 77 percent of Croatia osiguranje
shares.
No particular law is necessary for this privatisation process as it
will proceed on grounds of the Privatisation Act, Matic added
saying that "Croatia osiguranje" has not been defined as a public
company which should be privatised in line with a particular law.
Ivan Vrljic said the reason for this case of privatisation would be
to adjust the oldest insurance company in Croatia to the situation
marked by an increasing number of competitors. In Croatia there are
now 26 insurance companies, and seven of them are owned by foreign
nationals.
Reasons for this privatisation is also Croatia's bids to enter the
World Trade Organisation, the pension system reform, an increase in
life insurance and the expected development of insurance sector.
Rizvanbegovic maintained that now it was the right time to
privatise "Croatia osiguranje" in view to good business results.
Last year this firm recorded the gross profit of 76 million kuna
(approximately 11 million dollars) whereas the Croatia Group had
the gross profit of 119 million kuna (17 million dollars).
(hina) ms