The General Assembly of Petrokemija Decided to Increase the Share Capital to 450 Million Kuna

Shareholders of Petrokemija at the general assembly on Monday made decisions regarding the coverage of last year’s loss, as well as a decision to increase the share capital to a maximum of 450 million kuna through cash contributions and the issuance of new shares.

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As announced by Petrokemija, at the general assembly, in accordance with the previously announced agenda, decisions were made regarding the coverage of the loss incurred in 2017, the increase of share capital through cash contributions and the issuance of new shares, and the granting of approval for the acquisition of shares without the obligation to publish a takeover bid.

“This has created the conditions for the final process of implementing the company’s restructuring program and the legal framework for the recapitalization of Petrokemija,” emphasize the Kutina-based producer of mineral fertilizers.

According to the assembly’s decisions, the share capital of Petrokemija will first be increased through contributions in rights, from 42.9 to 492.9 million kuna, i.e., by 450 million kuna. This will be carried out by issuing 45 million new shares with a nominal value of 10 kuna, and these new shares will be subscribed and paid for by the state through the Center for Restructuring and Sale (CERP). The basis for this is the government’s decision from May to purchase claims from banks against Petrokemija in the amount of 450 million kuna. In accordance with that decision, the management of Petrokemija signed amendments to loan agreements with Erste&Steiermarkische Bank, Croatian Postal Bank, and the Croatian Bank for Reconstruction and Development with the new creditor – the Republic of Croatia, in the total amount of 450 million kuna.

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In order to cover last year’s loss of Petrokemija amounting to 242.6 million kuna, the assembly also made a decision on a simplified reduction of share capital by merging shares from 492.9 million kuna to 100.3 million kuna. Along with covering the loss of 242.6 million kuna, the remaining 150 million kuna from the reduction of share capital will be transferred to capital reserves.

After that, the share capital will be increased from 100.3 million kuna by an amount of up to 450 million kuna, i.e., to a maximum of 550.3 million kuna. This recapitalization will be carried out through cash contributions, issuing at least 40 million to a maximum of 45 million new ordinary shares with a nominal value of 10 kuna each.

As stated by Petrokemija in the invitation for the assembly, the purpose of the recapitalization is to raise funds for investments that ensure and improve production, restructuring, and financing of current operations.

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In May, Ina reported its intention to participate in the recapitalization of Petrokemija with an amount of 150 million kuna and announced that it would express this intention together with the First Gas Company.