The shareholders’ assembly of Petrokemija Kutina on Wednesday made a unanimous decision on recapitalization, it was learned from sources close to the supervisory board.
The amount of the recapitalization was not discussed. In the request for convening the assembly, the management proposed a recapitalization of 70 to 140 million euros. The largest co-owners – the Turkish group Yildirim (45.52 percent) and the Government of the Republic of Croatia (45.17 percent) reached an agreement, as it is learned, since the decision on recapitalization was made unanimously.
For now, it is known that the state will retain a controlling stake of 25 to 26 percent. The reservation of shares follows, and payments are expected by the end of April.
For the recapitalization to succeed and for the state to retain a controlling stake, it will have to contribute at least six million euros in capital if the Turkish partner contributes 70 million euros, which is the minimum proposed amount for recapitalization. The share capital of Petrokemija is currently 55 million euros.
Since arriving in Kutina and taking over Petrokemija, Yildirim has proposed to the Croatian government the purchase of its ownership stake. The assembly of Petrokemija was convened on February 7, and the Turkish majority owners did not take the opportunity to reduce the state’s stake below the controlling package. Discussions between Yildirim and the government about the future of Petrokemija also began then.
The factory’s environmental permits are soon expiring. To renew them, modernization of the facilities is required, which will be difficult to achieve before the expiration of the current environmental permits. Some environmental permits are expiring soon, which would also mean shutting down production. Without an agreement with the state, Yildirim would find it difficult to resolve this issue.
All state shareholders participate
The government recently took the position that it will participate in the recapitalization. Minister of Economy Damir Habijan emphasized that Petrokemija Kutina is a strategic company for Croatia.
The Ministry of Economy confirmed that discussions have been held in recent days with the majority owners of Petrokemija.
– Several meetings have been held in the Ministry of Economy and Sustainable Development with Turkish investors who emphasized the need for additional investment in the company and also submitted their Investment Plan 2023-2028. The Government of the Republic of Croatia continues to believe that Petrokemija d.d. is an important company, especially in this challenging time marked by the war in Ukraine and numerous geopolitical instabilities. In this sense, the production of mineral fertilizers is of exceptional importance for Croatian agriculture and farmers, so the Government of the Republic of Croatia will continue to act in order to protect the interests of farmers and Croatian citizens – states the response from the Ministry of Economy to Hina. The ministry confirmed that all “state” shareholders of Petrokemija will participate in the recapitalization.
The government’s ownership in Petrokemija is distributed to CERP with 17.9 percent of business shares, and indirectly through related companies (HPB custodial account on behalf of the Fund for Financing the Decommissioning of the Krško Nuclear Power Plant 12.73 percent, JANAF 9.09 percent, and PBZ custodial account 5.45 percent), totaling 45.17 percent of shares. Petrokemija owns 0.08 percent of shares, and the remaining shares are owned by small shareholders.
