Four offers submitted for privatisation of three Croatian shipyards.

By bne IntelliNews May 20, 2010
The privatisation fund (HPF) received four offers for the privatisation of the three state-owned shipyards, namely Brodotrogir, 3. Maj and Brodogradjevna Industrija Split. The fund received two offers for Brodotrogir from More Trogir and Jadranska Ulaganja. The offer for 3. Maj was submitted by Crown Investment on behalf of the Austrian company A-tec, while the offer for Brodogradjevna Industrija Split was made by DIV. The sell-off agency received no offers for Uljanik, Brodogradiliste Kraljevica and Brodosplit - Brodogradiliste Specijalnih Objekata. The offers' validity has not been assessed yet. After the verification, the offers will be sent to the economy ministry, which will analyse them with the management boards of the shipyards and representatives of the labour unions and the sell-off agency. Meanwhile, the competition agency will analyse the restructuring offers, proposed by the potential buyers. The procedures is expected to last about a month. The company More Trogir offered HRK 1 for the stake in Brodotrogir, proposing a five-year restructuring plan, which includes the settlement of the liabilities toward banks, covered by state guarantees. Jadranska Ulaganja also offered a price of HRK 1, as well as a restructuring plan, but it has not accepted liabilities, that are not covered by state guarantees. Crown Investment offered a three-year restructuring plan, the settlement of debts covered by state guarantees, as well as an agreement with the state on the exclusion of part of the shipyard's real estate as compensation of previous debts. DIV offered a price of HRK 3.7mn for the stake in Brodogradjevna Industrija Split and proposed debt settlement to the amount of HRK 2.48mn. The tender documentation was bought by fifteen companies. HFP published the tenders for the sell-off of the six state-owned shipyards in mid-February. The deadline for the bids was April 19, but later it was extended to May 19. This was the second round of the privatisation of companies as the first round failed. At the second round, the state put up for sale its majority stakes in 4 shipyards for the token price of HRK 1, namely for 95.24% of Brodotrogir, 99.54% of Brodogradiliste Kraljevica, 83.32% of 3. Maj, and 99.78% of Brodogradjevna Industrija Split. In addition, the state also offered its 100% stake in Brodosplit - Brodogradiliste Specijalnih Objekata for HRK 18.16mn and its majority stake 59.25% in the Pula-based Uljanik, for which the starting price was set at HRK 397.49mn. The tender terms include several mandatory clauses, including restructuring plans with structural and financial measures for the establishment of the shipyards' long-term profitability, business reorganisation and rationalisation. The restructuring of the shipyards has to include compensation measures through the reduction of production capacity and the own contribution of bidders, which to be at least 40% of the restructuring costs. The potential buyers have to submit plans for clearing the shipyards' financial obligations to the banks, for which the government had given guarantees. The bidders will be able to sign agreements with the social partners and will have the opportunity to offer 25% of the shares to workers under special conditions in 6 months from the day of initial recapitalisation. This option will be available for five of the six shipyards with the exception being Uljanik, for which the government had taken separate decision for the sale of its 25% stake to workers.

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