SN Holding announced an offer to acquire LRH

SN Holding, which at the end of last week signed an Agreement with the Croatian Privatization Fund (HFP) acquiring 177,273 shares of Liburnia Riviera Hotels (LRH), now holds a total of 61.13 percent of the shares of that hotel company, announced today that it will publish an offer to acquire LRH within the legal deadline.

In the information regarding the obligation to publish an offer for the acquisition of LRH, which was published today on the Zagreb Stock Exchange, SN Holding states that on July 23 it signed an agreement with HFP by which it acquired 177,273 shares of LRH, and that HFP immediately transferred 165,941 shares of LRH to it. The remaining 11,332 shares will be transferred to SN Holding when and if the suspensive conditions stipulated in the agreement are fulfilled, according to the announcement. Before signing that agreement, SN Holding had 7,732 shares of LRH, so after its conclusion, it has a total of 185,005 shares, što represents 61.13 percent of all voting shares of LRH.

This created an obligation for SN Holding to publish an offer for the acquisition of all shares of LRH. SN Holding does not act jointly with any natural or legal person in this matter, and the offer for the acquisition of LRH shares will, as stated, be published "at the average price calculated as the weighted average of all prices achieved on the stock exchange in the last three months before the obligation to publish that offer arose."

The offer will be published after što the Croatian Financial Services Supervisory Agency (HANFA) approves their request for it. The agreement with HFP was signed by SN Holding on Friday, July 23, after the Croatian Government decided to transfer 165,941 shares, or 54.83 percent of LRH shares, to that holding free of charge, with the aim of resolving all ongoing disputes between SN Holding and HFP, which date back to the time of coupon privatization. Additionally, HFP will, as it was then stated, pay SN Holding 162.1 million kuna, which that Holding paid after the 2005 agreement that was not realized.

Thus, a settlement was actually reached between HFP and SN Holding regarding LRH, and after signing the agreement with HFP, SN Holding became the majority owner of that largest hotel company in Kvarner. HANFA temporarily suspended trading in the shares of SN Holding and LRH until today at 10 a.m. due to information that the HFP Management Board would be informed about the activities related to the negotiations between HFP and SN Holding. After trading in the shares of SN Holding resumed today, a significant price increase was recorded, around noon it was traded at a price of 205 kuna, što is an increase of about 30 percent, and more than 1.1 million kuna was traded. The shares of LRH were traded by noon for about 603 thousand kuna, with a price increase of about 4.5 percent, to 2,310 kuna.   (H)