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Đuro Đaković Group Announces Public Call for Capital Increase of 250 Million Kuna

Đuro Đaković Group announced on Friday a public call for the subscription of 12.5 million new ordinary shares, which would increase the share capital by 250 million kuna, and investors will be able to subscribe for new shares from October 9 to October 20.

The General Assembly of Đuro Đaković Group made a decision on September 22 to increase the capital by 250 million kuna, thereby increasing the share capital from 203.06 to 453.06 million kuna.

This increase in share capital will be implemented by issuing 12.5 million new ordinary shares with a nominal value of 20 kuna each, with a complete exclusion of the preemptive rights of existing shareholders, and by the decision of the assembly, acquirers of new shares are exempt from the obligation to publish a takeover bid.

All existing shareholders will have the opportunity to participate in the subscription process for new shares under the same conditions as other investors.

The subscription of new shares will be conducted in one round in which all investors who will pay at least 800 thousand kuna per investor for the subscribed new shares will have the right to subscribe for each individual offer.

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The minimum or maximum number of new shares that an individual investor can subscribe to is not specified, except for the limitation provided by the maximum amount of issuance, i.e., 12.5 million new shares, which is also the threshold for the success of the issuance.

The final price of the new shares will be determined by the Group’s Management on October 20. The Group’s Management will also determine the success of the issuance of new shares, based on the state of subscription and payment after the deadline for payment of new shares, on October 24.

Foreign Investors

Đuro Đaković Group reported in mid-September that it had received a binding offer from the Zagreb company Crni čelik d.o.o., backed by foreign investors from Canada and Kuwait, for a capital increase of 250 million kuna and the acquisition of a majority ownership package in the company.

Crni čelik has three conditions for its binding offer – the decision of the General Assembly to increase the share capital by 250 million kuna by issuing new shares at a price of 20 kuna, with the exclusion of the preemptive rights of existing shareholders, “which will ultimately represent more than 50 percent of total ownership”, then the decision to acquire the newly issued shares without the obligation to publish a takeover bid, and that four members determined by Crni čelik enter the seven-member Supervisory Board of Đuro Đaković.

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In response to journalists’ inquiries after the assembly meeting on September 22 about whether Crni čelik could become the majority owner of Đuro Đaković after the latest capital increase, the president of the management of the Slavonski Brod company, Tomislav Mazal, stated that the continuation of capital increases was initiated based on an offer publicly announced on the Zagreb Stock Exchange. “Thus, the call goes through a public offer on the Zagreb Stock Exchange, and we hope that the call will be successful, and who will invest and how much, we can talk about when everything is over,” Mazal said at the time, adding that the investor behind the company Crni čelik is very serious.

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According to data from the court register of the Commercial Court in Zagreb, the company Crni čelik d.o.o. was established at the end of August this year, founded by Steve Daskos from Canada and Hamad M.A.A. Alwazzan from Kuwait.

The government also discussed the capital increase of Đuro Đaković Group, which at a meeting held on September 22 authorized the state representative in the assembly to vote for the decision on the capital increase of Đuro Đaković through the Zagreb Stock Exchange, i.e., by issuing 12.5 million new ordinary shares at the lowest price of 20 kuna per share. In the case of a successful capital increase, the new owner would have a 54 percent stake in Đuro Đaković while the state would retain a stake of 16 percent.

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