City of Hvar Rejects Orco’s Offer

The City of Hvar has rejected Orco’s offer to settle the city’s stake in Sunčani Hvar with real estate, and we are returning to seek a solution so that the city receives 25 percent plus one share in that hotel and tourism company, stated Deputy Prime Minister and Chairman of the Management Board of HFP Damir Polančec after today’s meeting with representatives of the City of Hvar, Orco Group, and the Church.

"At no moment has it ever been questioned whether we are ready to transfer 25 percent plus one share of Sunčani Hvar to the City of Hvar," asserted Polančec, announcing a follow-up meeting for next week. He explained that an alternative solution has emerged from the Orco Group, specifically from the CEO of Sunčani Hvar, Dragan Lazukić, regarding the settlement of the City of Hvar through certain real estate. Polančec stated that he has never dismissed this idea, but he also reiterated that the government’s position on the transfer of shares to the city has always been clear.  The Mayor of Hvar, Pjerino Bebić, stated that the City has expressed gratitude for any compensation (real estate), and that the goal of the City is to obtain 25 percent plus one share of Sunčani Hvar.

Bebić claims that the first condition for the transfer of shares, the payment of 15 million kuna, will not be a problem for the City, nor will the withdrawal from all legal disputes with Sunčani Hvar.  For Bebić, the third condition – acceptance of the Shareholders’ Agreement – is contentious, as he says that in that case, the City would lose 25 percent plus one share.  Bebić reported that Polančec said at today’s meeting that he needs to see that, as he does not have a mandate for it. The City of Hvar is ready to sign the decision from January 11 according to the Opatija model, meaning that after the exclusive recapitalization of Sunčani Hvar, a model will be found for the City to retain 25 percent plus one share and thus participate in the public-private partnership, and upon its expiration in 2010, the local community remains a partner, said Bebić. Polančec announced a new meeting for next week and believes that a solution will be found that will satisfy the City of Hvar. He also announced that separate meetings will seek a solution for compensating the Church for the seized properties during the communist regime. (H)