Zagreb, October 31, 2018 – INA and PPD as investors signed the Recapitalization Agreement on Petrokemija with CERP as a representative of the Republic of Croatia. The companies paid HRK 300 million (HRK 150 million each), for 30,000,000 Petrokemija shares after which they will become majority owners of Petrokemija, holding more than 50% of the share capital and respective management rights. The transaction was conducted through INA’s and PPD’s joint venture company Terra mineralna gnojiva d.d. (TMG), which will operate the company in accordance with the signed Shareholders’ Agreement. This way, the possible bankruptcy of Petrokemija has been avoided and the decision was unanimously supported by the representatives of two largest shareholders in Ina’s Supervisory Board.
The aim of the investment is to continue and develop Petrokemija’s activities in production of mineral fertilizers. The partners will cooperate in good faith and use their best efforts to ensure that Petrokemija is able to carry on its activities. Regarding that, INA and PPD will make efforts to improve Petrokemija’s current financial position in upcoming period through improvement of product portfolio, reaching sustainable operating expenses, ensuring external refinancing of inherited debts and further optimization of processes.
President of the Management Board of INA Mr. Sándor Fasimon stated: „INA once again proved to be a stable and reliable partner of the company, as well as of the entire Croatian economy and local community. Together with our partners, we want to ensure sustainable and market-oriented business development of Petrokemija, from which the company and economy can benefit.”
“In recent years, PPD has contributed significantly to maintaining production in Petrokemija. By signing the Recapitalization agreement and making this transaction we have remained consistent despite all the difficulties. As a Croatian company we are ready to invest our knowledge and capital in the best interests of Petrokemija and Kutina and, in turn, the Croatian economy which is in need of technological and business development. We believe that we will, in cooperation with our partners, ensure the long-term sustainability of Petrokemija,“said the President of PPD Management Board, Mr. Pavao Vujnovac.
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