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Podravka Needs to be Privatized

Today, the technical Government revised the list of companies of national interest during a telephone session in May this year, removing eight companies from it, including Podravka. The revision for the purpose of privatization immediately sparked public debate, which was revived ahead of the elections by Professor Ivan Lovrinović, the head of the list in the IV electoral district of the coalition Jedina opcija (Živi zid, Franak, Promijenimo Hrvatsku, Akcije mladih), stating that Podravka must be returned to the list of strategically important companies as it is the backbone of the development of Koprivničko-križevačka and surrounding counties and the most important food industry in Croatia.

Lovrinović: Podravka must be returned to the list of strategically important companies

In a telephone conversation for Lider, Lovrinović was countered by one of the most successful Croatian entrepreneurs, the owner of the Orbico group, Branko Roglić, who stated that Podravka does not represent a strategically significant company and should therefore be left to one of the leading players in the industry. Roglić said that Croatia “is still living in a bankrupt socialism” and that everything that is not of true national interest should be privatized.

Roglić: Privatization is necessary if we want capitalism instead of bankrupt socialism

In this week’s Fight Club, we ask whether Podravka represents a company of strategic interest, or is its privatization justified?

About Podravka

According to the company’s official pages: “Podravka d.d. was privatized and registered as a joint-stock company in 1993, and since 1994, its shares have been freely traded on the Croatian capital market. The shares of Podravka d.d. have been listed on the Official Market of the Zagreb Stock Exchange under the symbol PODR-R-A since 1998. It is the only share that has never left the composition of the CROBEX stock index since its inception.”

The state share in Podravka amounts to 25.4 percent, while 42.1 percent is owned by pension funds.