Majority Owners of Joint-Stock Companies Are Increasingly Becoming Their Sole Owners

The Široki Brijeg-based Mepas has embarked on a complete takeover of ownership in its companies in Croatia. The assembly of Koestlin, in which Mepas holds 89.16 percent of shares, will vote next month on the proposal to squeeze out the remaining shareholders. A month ago, Mepas also increased its stake in Brodomerkur to 96.17 percent and announced the obligation to publish an offer for its complete acquisition. The Grbešić family, owners of Mepas, is getting closer to being in a position to do the same in Saponija soon, where it currently holds a stake of 87.3 percent.

The squeeze-out of minority shareholders from the ownership structures of Croatian companies has gained momentum this year. Excluding Koestlin and Brodomerkur, around fifteen such cases have been recorded since the beginning of the year, six of which are in the hospitality sector. The most recent case involves Adriatic Luxury Hotels, and just this summer, minority shareholders exited the ownership structures of the Cavtat Hotel Croatia, the company Jelsa, Hotel Imperial Vodice, Hotel Jadran Šibenik, and Zadar’s Turisthotel, which has become the sole owner of Tankerska Plovidba. This was Tankerska’s second squeeze-out of minority shareholders in just over six months, considering that at the end of last year, it fully acquired ownership in Tankerska Next Generation.

The squeeze-out of small shareholders, some of whom have steadfastly held their shares for around thirty years, has also been carried out this year by Čakovečki Mlinovi in Trgovina Krk, the company Sol Naturalis in Solana Pag, Arriva in Panturist, and so on, with one (semi)failed attempt recorded. The company Välinge Croatia, owned by Darko Pervan, announced a bid to purchase the remaining shares of the Požega company when it held 83.01 percent of Spin Valis shares last spring, but the deal fell through as the bidder failed to secure the funds for the offered shares. In the meantime, Pervan’s company secured the funds and has now acquired 97.9 percent of the shares in Spin Valis.