Croatia Mulls Option to Regain Majority Ownership in INA

The Croatian government is considering an option to acquire from Hungary's MOL a stake of around 7.0% in local oil and gas company INA [ZSE:INA-R-A] in order to regain control of the company, Croatian media reported on Tuesday.

MOL currently owns 49.08% of INA and the Croatian government controls a further 44.84%.

The government in Zagreb would not pass up an opportunity for such a move if it presents itself and would finance the acquisition with borrowed funds, news daily Jutarnji List reported, quoting an unnamed source close to the cabinet.

In 2003, the Hungarian company acquired a 25% plus one share in INA, leaving operational control to the government. In 2008, MOL acquired an additional 22.1% of INA, reaching a stake of 47.1%. MOL then took operational control of the company in 2009 under a contract amendment signed with the government in Zagreb.

In September, the two sides launched talks to renegotiate the terms for the company's management. In August, the Croatian government said the talks with MOL were prompted by the deterioration in INA's performance over the past few years and underinvestment in its refineries, among other issues.

The last round of talks between the two sides was held in early May.

According to Jutarnji, however, MOL is unlikely to agree to sell a stake of just 7.0% and sell it to none other than the Croatian government with which it has been unable to find common ground for years.

The daily added that the Croatian government is drafting a new privatization bill that should give it pre-emptive rights in case MOL decides to sell its stake in INA.

Earlier in the day, a source told SeeNews on condition of anonymity that MOL has filed a complaint with the European Commission (EC), claiming that Croatia's energy legislation is preventing it from freely managing its refining assets in the Adriatic country and that the Hungarian company is seeking a probe into whether Croatia's energy law is in line with EU legislation.

In November, MOL said its executive board had been authorized to start the preparations for the sale of the company’s stake in INA.

Source: SeeNews