Mr. Marić: Capital Increase Must Permanently Solve Petrokemija’s Problem

The process of capital increase for Petrokemija is not completed, but it is neither interrupted nor failed, stated the Minister of State Property Goran Marić, expressing confidence that the process will succeed and that in the coming weeks the model of capital increase and who will be participants will be known.

Responding on Monday to journalists’ questions after a press conference at the Ministry of State Property, Marić said that “he does not know whether and when there will be a strike,” adding that “Petrokemija has an activity that we must monitor with special attention.”

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“The government will do everything possible to save production at Petrokemija. When it comes to such a large and valuable business entity, there is always room to find a solution,” he said.

He did not specifically answer a journalist’s question about whether the state would write off part of the company’s debts, which investors are reportedly demanding as a condition for the capital increase, but he reiterated that a solution must be found and believes that the government will do so.

When asked if this means that the state will take on part of Petrokemija’s debt, the Minister of State Property Marić replied: “I would do a lot for the salvation of Petrokemija.”

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“If the capital increase process is done in such a way that it will last briefly, then it is not worth it. This process must permanently solve Petrokemija’s problem and establish a business system that will be stable for employees, production, suppliers, creditors, and everyone, and I believe there is room for that,” said Marić.

He stated that he is participating in seeking a solution, that he will “be very positive about Petrokemija,” but also noted that this process is led by the relevant ministry, not the Ministry of State Property.

Significant problems with Kutina’s Petrokemija began in mid-January when Ina suspended the supply of natural gas due to payment issues for previously delivered quantities. Although Ina later resumed gas supply, the capital increase remains crucial for the normal functioning of Petrokemija.

>>>Ćorić: Gas supply for Petrokemija is flowing smoothly, capital increase is a regular topic

Petrokemija shareholders decided at an extraordinary assembly in mid-January to initiate the capital increase process, intending to raise 450 million kuna.

The increase in share capital would be carried out by issuing 45 million regular shares with a nominal value of 10 kuna, using the exemption from the obligation to publish a prospectus regarding the public offering and completely excluding the preemptive rights of existing shareholders when subscribing for new shares of the company.

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Petrokemija previously reported that it had received binding offers from several interested bidders for the capital increase, which were submitted to the Center for Restructuring and Sale (CERP) and the Ministry of State Property for further processing. According to media reports, among them are the Austrian Borealis and Croatian companies PPD and Ina.

Disappointed by the slow process of capital increase for Kutina’s Petrokemija, two trade union associations and the Association of Croatian Veterans of the only Croatian mineral fertilizer factory sent an open letter to Prime Minister Andrej Plenković on February 14, stating that he has a seven-day deadline for a strategic decision on the continuation of the capital increase, or otherwise, he will lose their support.