Stjepan Čajić climbs to second position among Varteks shareholders

IT entrepreneur Stjepan Čajić is climbing the ranks among Varteks shareholders. According to a notice published on Friday on the Zagreb Stock Exchange, through a Share Transfer Agreement, Čajić acquired 500,000 shares on February 13, bringing his total to 1.22 million shares, or 24.41 percent of the stake. This brings the entrepreneur from Bosnia and Herzegovina very close to the leading shareholder Marko Vučijević, who controls 24.9 percent of the stake, according to data from the Central Clearing and Depository Company.

The notice does not specify from whom Čajić purchased the shares, but the package of 500,000 shares is owned by Mira Čajić, the fourth largest shareholder of the Varaždin textile company. It is worth noting that Varteks is owned by small shareholders, and alongside Antonio Popić, who holds 14.5 percent of the shares, there is also the Košćec family (Zoran holds 8.5 percent, Dražen 1.45 percent, and Vladimir 0.5 percent). Stjepan Igrec holds 2.7 percent.

Burdened by problems

Stjepan Čajić began purchasing Varteks shares three years ago. When asked why he decided to invest in Varteks, Čajić briefly stated for Lider: “I think that many Croatian shares are undervalued, including Varteks. A stake of 7.4 percent may be some news, but the value of that percentage in absolute terms on the stock exchange is quite small,” said Čajić in April 2021.

He did not reveal much about his motives then, and he has not responded to Lider’s inquiry about what prompted him to increase his stake, whether he is satisfied with his previous investment, and whether he intends to become more actively involved in the company’s management. However, judging by the market reaction, Čajić’s increase in stake is a positive scenario. Namely, the value of Varteks shares jumped by 25 percent on Friday, to 30 cents.

Varteks has been burdened by business problems for a long time. In the last five years, the company has recorded losses that, according to its own data, have varied between 650,000 and four million euros. Annual revenues during those years have ranged between 16.5 and 23.3 million euros. The nine-month results for last year also do not inspire optimism. Total revenues decreased by eight percent, to 9.6 million euros, and the loss has already exceeded four million euros.

Otherwise, Varteks announced at the beginning of November last year the withdrawal of its shares from the Zagreb Stock Exchange, which was to be voted on at the shareholders’ meeting on December 15. However, that proposal was not accepted by the shareholders.