Ina and PPD Conclude Sale of Majority Stake in Petrokemija to Yildrim, Turks Announce Major Investments

Ina and PPD have successfully concluded the previously announced transaction with the Turkish group Yildrim regarding the sale of their business shares in Terra Mineralna Gnojiva d.o.o., Ina reported on Friday via the Zagreb Stock Exchange.

Upon fulfilling all conditions from the sales agreement, the sale of business shares in the company Terra Mineralna Gnojiva, a partnership owned by PPD and Ina, which holds 54.52% of Petrokemija shares, to the Turkish group Yildrim has been successfully completed, the announcement adds.

The Yildrim company signed a sales agreement with Ina and PPD at the beginning of November last year for the acquisition of their company Terra Mineralna Gnojiva and thus their majority stake.

In addition to Terra Mineralna Gnojiva, which has a 54.52% stake in Petrokemija, the ownership of the Kutina mineral fertilizer factory includes the Center for Restructuring and Sale (CERP) which has a 17.9% stake, while 12.73% is held in a custodial account at HPB on behalf of the Fund for Financing the Decommissioning of the Krško Nuclear Power Plant, 9.09% of shares are held by Janaf, and 5.45% is in a PBZ custodial account. Petrokemija itself owns 0.08% of shares, while the remaining shares are owned by small shareholders.

– Before entering the ownership structure of Petrokemija as a gas supplier, we significantly contributed to maintaining the production of mineral fertilizers, even jeopardizing our own business due to Petrokemija’s high debts to us as the largest creditor. We are glad that in 2018 we were part of the solution to save Petrokemija from bankruptcy. We did the best we could in the given circumstances, in the best interest of Petrokemija and Kutina.

The production of mineral fertilizers is not our core business, and it is time for Petrokemija to move forward with an owner who knows that business and the market. We thank the Government of the Republic of Croatia and the Ministry of Economy and Sustainable Development for the constructive negotiations conducted in the best interest of Petrokemija and the Croatian economy. We wish the employees of Petrokemija and the new owners much success in creating a successful and profitable Petrokemija – stated Pavao Vujnovac, CEO of PPD, in the company’s statement.

The knowledge, resources, and energy we have invested in Petrokemija in the past period have contributed to preserving the production of mineral fertilizers in Kutina and Croatia and improving the company’s operations, emphasized Péter Ratatics, CEO of Ina. INA has always been a reliable partner to Petrokemija, even at times when it could not meet its obligations, he conveyed.

– By participating in saving Petrokemija from certain bankruptcy, we ensured the prerequisites for the continuation of its operations. INA has once again demonstrated its strategic responsibility towards Croatia and its industry, even though the production of mineral fertilizers is not in our development plans. We wish the new owners and Petrokemija much success in their future operations, and we thank all stakeholders in this process for their successful cooperation – stated Ratatics.

Odobas: We Plan Significant Investments in Petrokemija

Ali Odobas from Yildirim Holding, the future CEO of Petrokemija, said in a statement to reporters on Friday that they are happy to be in Croatia, it took a long time, but today they completed the acquisition process.

– We plan significant investments in Petrokemija – he said, adding that he believes they will start production in Kutina in 2-3 months.

– We are looking forward to leading Petrokemija, it is a very significant project for us. We have a lot of experience in this industry, and the acquisition of Petrokemija is not our first project of this kind. We are very familiar with the petrochemical industry and know very well what we will do and how we will operate in Kutina – he said.

When asked why the process took so long, he said that it is normal, they know this from their previous acquisitions. There were, he said, no obstacles in acquiring Petrokemija.

When asked how he cooperated with the Minister of Economy Davor Filipović, he replied that Yildirim has many plans for Petrokemija and will cooperate with all parties that can be involved. He emphasized that Petrokemija is a strategic investment for Yildirim, as this company should become a gateway for expanding business in Central and Eastern Europe.

To the specific question of when Yildirim plans to resume production, he replied that it could be in the summer, considering the movement of natural gas prices, which is Petrokemija’s main energy source.

We will organize everything in two to three months and be ready, he said, reminding that Petrokemija has not invested in production equipment for a long time, so that must be arranged first, and then see what will happen with gas prices.

He also announced investments in the Šibenik port, stating that they will start with “upgrading” the equipment there in May.

Glavaš: Profit is Reinvested

The Director of Corporate Services at Ina, Hrvoje Glavaš, stated that with today’s signing, or conclusion of the transaction, one cycle of Petrokemija’s operations has ended, which for them from Ina and PPD began in 2018 when they took over the majority ownership and management of the company.

– We are extremely proud of what we have achieved in these four and a half years – he said, recalling how they took over a company that was in pre-bankruptcy status and in 2018 generated almost 500 million kuna in losses.

They entered with fresh capital and knowledge and carried out a restructuring that led to two or three of the best financial years in Petrokemija, he said, emphasizing that not a single kuna of generated profit has been withdrawn from the company through dividends or any other means, but everything has remained in the company for financial stabilization and investments.

He hopes that with the new owner, Petrokemija is ready for a new leap in business.

PPD Management Board member Antonija Glavaš also stated that since their entry into Petrokemija, the company has operated positively and added that they are glad that they knew and managed to help stabilize Petrokemija.

Today, she said, they are grateful to the Government and the relevant Ministry of Economy for concluding the negotiations, and they wish the new owners success in their further work.