Shareholders of the Pula shipyard Uljanik decided on Friday at an extraordinary general assembly about the capital increase, specifically an increase in the share capital from 180 to a maximum of 302.22 million kuna, and a strategic partner is also being sought for the shipyard.
At the same time, it was heard that the future owner, or strategic partner of Uljanik, is expected to invest around one hundred million euros.
So far, letters of intent for investment in Uljanik have been shown by Danko Končar and his company Kermas Energija, as well as the Italian Palumbo Group, while the Italian shipyard Fincantieri from Monfalcone and the Dutch Damen Group are visiting the Pula shipyard and have not yet officially sent letters of intent.
>>>While Uljanik is sinking into bankruptcy, Uljanik Plovidba increased revenues by 10 percent in 2017
‘We must preserve shipbuilding to the greatest extent possible because it is our common interest. The state has shown that it cares about preserving shipbuilding, as does the city of Pula, because I believe that none of our decisions have been detrimental. Therefore, only together, shareholders, unions, management, the city, the county, and the state can push this process forward,’ said Pula Mayor Boris Miletić.
With today’s decision, the Uljanik assembly has ‘blessed’ the increase of the company’s share capital from 180 million kuna to a maximum of 302.22 million kuna, without the obligation to publish a takeover offer. Thus, the share capital could be increased from 100.69 million kuna to a maximum of 402.91 million kuna. The increase in share capital would be carried out by cash payment through the issuance of at least 6 million to a maximum of 10.07 million new ordinary shares with a nominal value of 30 kuna each.
‘The Government of the Republic of Croatia has given full support to the Uljanik Group and approved a state guarantee for a loan in the amount of the requested 96 million euros because the only long-term solution for the survival of Uljanik Shipyard d.d. is the restructuring process,’ said Uljanik CEO Gianni Rossanda.
Foundation for Avoiding Liquidation
He reminded that the Government conditioned the approval of the state guarantee on Uljanik d.d. and Uljanik Shipyard d.d. carrying out the increase in share capital, with the entry of a strategic partner into Uljanik d.d. and the preparation and initiation of the restructuring process based on the restructuring plan of Uljanik Shipyard d.d. in cooperation with the strategic partner.
‘Essentially, today we, as shareholders, with this decision have created the basis to avoid a liquidation scenario that no one who wants shipbuilding should even think about, and have laid the foundations for a new, stronger, more sustainable Uljanik in the market of sophisticated ships,’ said the head of Uljanik.
>>>Rossanda: Uljanik did not operate according to the Agrokor model
In his address to the shareholders at the assembly, he detailed the financial situation, the recovery process, and the selection of a strategic partner. The restructuring process and securing additional capital, among other things, with the entry of a strategic partner into the Uljanik group is necessary, because without restructuring we have the activation of 569 million euros in state guarantees, a potential loss of 4,500 jobs, and a permanent loss of activity in Pula and Rijeka, Rossanda stated, among other things.
Istria County Prefect Valter Flego emphasized that Uljanik is a symbol of this area and ‘much more than what happens within its walls’ and that it is of utmost importance to retain shipbuilding and jobs.
>>>Rossanda: Salary payments await approval from the European Commission, we will need fewer workers
‘We must preserve shipbuilding to the greatest extent possible because it is our common interest. The state has shown that it cares about preserving shipbuilding, as does the city of Pula, because I believe that none of our decisions have been detrimental. Therefore, only together, shareholders, unions, management, the city, the county, and the state can push this process forward,’ said Pula Mayor Boris Miletić.
