CERP Establishes Initial Prices for Club Adriatic and Maestral Hotels

The Center for Restructuring and Sale (CERP) will announce public calls for the submission of binding offers for the privatization of two tourism and hotel companies – for the purchase of a 100 percent stake in Club Adriatic and 68.94 percent of the shares of Maestral Hotels from Dubrovnik, for which the Management Board of CERP has determined initial prices.

The Management Board of CERP made decisions on the initial price and the implementation of the public collection procedure for binding offers for the purchase of a 100 percent business share of Club Adriatic and for 68.94 percent of the shares of Maestral Hotels at last week’s meeting, and they were published on the CERP website on Tuesday.

Thus, after the sale of Club Adriatic to the Swiss investor Immo Invest Partner failed, the collection of binding offers for this hotel and tourism company will be initiated again.

According to last week’s decision of the Management Board of CERP, the initial price for the purchase of three business shares or 100 percent of the share capital of Club Adriatic is 48.5 million kuna.

Only bidders who purchase the bidding documentation will have the right to submit a binding offer, and the cost of obtaining it is 100 thousand kuna.

The offer must also include a bid guarantee in the amount of 970 thousand kuna.

The best bidder will be considered the one who offers the highest purchase price, provided that their binding offer is not conditional or “must be submitted without reservations.”

The renewed search for a buyer for Club Adriatic follows after the Management Board of CERP determined in mid-June that the Swiss company Immo Invest Partner did not pay the agreed 54 million kuna within a month of signing the contract.

Representatives of CERP and the Swiss company signed the contract in mid-April this year, after Immo Invest Partner was the only one to submit a binding offer for the purchase of Club Adriatic.

CERP began the sale process for Club Adriatic at the end of September last year by announcing a public call for expressions of interest in purchasing the company, and in that first round, 15 letters of intent were received, but only the Swiss company submitted a binding offer.

In that round of sales, potential bidders were also required to commit in their binding offer to secure financial resources for Club Adriatic to settle all obligations under the pre-bankruptcy settlement or to satisfy all creditors whose claims were established in the pre-bankruptcy settlement process, as well as the priority claims of workers and the claims of Slatina Bank, which opted for separate settlement of claims as a secured creditor.

Representatives of the Swiss investor cited problems with some creditors from the pre-bankruptcy settlement process as the biggest issue for fulfilling the conditions of the purchase agreement, as some of them did not want to sign statements of settlement because some of them demanded interest in addition to the principal.

The state has attempted to sell Club Adriatic nearly a dozen times so far, but it has not succeeded, just as it has not succeeded in selling the majority stake in Dubrovnik’s Maestral Hotels.

Therefore, CERP should soon announce a public call for the submission of binding offers for the purchase of 355,520 shares or 68.94 percent of the shares of Maestral Hotels.

According to the decision of the Management Board of CERP, the initial price for that majority stake in Maestral Hotels is 126.8 million kuna.

Potential bidders in their binding offer, in addition to the price they offer for 68.94 percent of the shares, will need to submit an investment plan for the development of Maestral Hotels with a defined investment amount, formed based on actual possibilities and in accordance with valid spatial plans.

Regarding the fulfillment of obligations in the scope and deadlines specified in that plan, potential bidders will have to accept the obligation to pay a contractual penalty of ten million kuna when concluding the contract if they do not fulfill or partially fulfill or delay the fulfillment of obligations from the plan.

Offers for Maestral Hotels can be submitted by those who purchase the bidding documentation for one hundred thousand kuna and submit a bid guarantee in the amount of 2.5 million kuna.

The Management Board of CERP also decided at last week’s meeting to suspend the public collection process for offers for the sale of the majority stake in Maestral Hotels, which was initiated at the beginning of February this year.

Namely, at the meeting of the Management Board held on February 8, it was decided not to accept the offer from the Czech J&T IB Capital Markets based on last year’s tender and to go for a new tender by collecting offers in the first round. However, this decision to collect offers in the first round has now been suspended, and all interested parties will be able to submit a binding offer in the tender that will be announced.

After CERP announces public calls, those interested in submitting binding offers for Maestral Hotels will have a deadline of 45 days to submit offers, while those for Club Adriatic will have a deadline of 30 days from the announcement of the tender.