Three Bids for the Kraljevica Shipyard

The Croatian Privatization Fund (HFP) has received three bids and one letter of intent for the privatization of the Kraljevica Shipyard – the bids were submitted by Zagreb companies Adria-Mar Shipbuilding and Adriatic Investments, as well as the Serbian company Shipyard Bomex 4M, while the letter of intent was provided by the Dutch Damen Shipyard Group.

The deadline for submitting bids for the purchase of 99.54 percent of the shares of the Kraljevica Shipyard expired today at 2 PM, and the bids were subsequently opened at the HFP. The bidding documentation was also purchased by Zagreb’s Montmontaža, but they did not submit a bid. The HFP’s Bid Opening Commission determined that all three bids were valid, but did not disclose any details from the bids during the opening. The HFP’s expert services will analyze the bids and submit them to the Government Commission for opinion, and after receiving the opinion of that commission, the bids will be forwarded to the Ministry of Economy. HFP Board Member Ozren Matijašević (HUS) stated that the unions accept any bid that proves the bidder is capable of meeting all the tender conditions, which primarily means ensuring the continuation of shipbuilding activities. Matijašević believes that the three bids in the third privatization round for Kraljevica justify the government’s efforts in negotiations with Brussels that enabled the third round to take place at all. If the privatization fails, the fate of the workers and the shipyard is uncertain, so everything must be done to ensure that the Competition Protection Agency and the European Commission accept the restructuring plans, Matijašević said.

Interest in the third round for Kraljevica shows that shipbuilding is an undeniable value regardless of current business indicators, he said. Rastko Davila, Assistant Director of the Kraljevica Shipyard for restructuring, stated that he hopes the oldest Croatian shipyard will survive. All three bidders come from the shipbuilding industry, says Davila, which he considers a positive sign. The third tender for the privatization of the Kraljevica Shipyard was announced according to the Government’s decision of October 21. The tender sells a consolidated state portfolio of 893,150 shares, with a total nominal value of 178.3 million kuna, which constitutes 99.54 percent of the Kraljevica Shipyard’s equity. The starting price for this state portfolio is one kuna, and the tender required potential bidders to meet several mandatory conditions, including a restructuring program, which must also include a contribution from the bidder of at least 40 percent of the total restructuring costs. (H)