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Petrokemija invites investors to express interest in subscribing for new shares

The management of Petrokemija today invited interested investors to express their interest in subscribing for new shares of Petrokemija within 21 days, with payment in cash, assets, and rights.

As announced by the company, the invitation is based on the Government’s decision from September 24 of this year. The Government authorized the Ministry of Economy to vote at the Petrokemija general assembly for the acceptance of the revised restructuring plan, which would ensure the long-term stability of the Kutina fertilizer plant through recapitalization in cash, assets, and rights. This, as emphasized by Minister of Economy Ivan Vrdoljak at the Government session, saves Petrokemija, which has been incurring losses ranging from 50 to several hundred million kuna for years, but in the first half of this year, that loss was reduced to 15 million kuna.
The management of Petrokemija also states in the invitation that, in accordance with the revised restructuring and financial consolidation program of Petrokemija from 2015 to 2019, and considering the satisfactory results achieved by the Petrokemija Group in the first six months of this year, “it continues to implement the planned restructuring plan for which further implementation requires the execution of recapitalization during the next period.”
The management also believes that, for the continuation of normal operations and the implementation of the restructuring plan, recapitalization should optimally be carried out either by payment for new shares in cash or by exchanging creditor claims for ownership stakes in Petrokemija.

After expressing interest, the auditor will assess the value of the assets and/or claims being invested. Depending on the results, the maximum number of new shares for which the share capital can be increased will be determined.

The management and the Supervisory Board will then convene a meeting with a proposal to adopt a decision on increasing the share capital, as announced in the invitation.

In order to realize the revised restructuring program, the management intends to allow the subscription of new shares exclusively to potential investors who will pay an amount in kuna equivalent of at least 100,000 euros for the subscribed new shares.

Last year, Petrokemija did not find a strategic partner, so the management and the Supervisory Board initiated a restructuring and financial consolidation program, which also includes recapitalization. In that recapitalization, capital amounting to 253 million kuna was subscribed, while the planned amount was 500 million kuna.