Croatia: MOL States Bid Price for INA

1€ = 7.136 Croatia Kuna(HRK)

The offer has been approved by Croatian financial market watchdog HANFA, MOL said. The offer will run for 28 days from the date of publication in the Official Gazette and Croatian national newspaper.

The offer is HRK 1,110 over INA's IPO price and HRK 227 over the share's three-month average price prior to MOL's announcement it intended to buy out the company, MOL noted.  MOL, which owns 25pc of INA, is making the bid in concert with the Croatian state, which holds 44.8pc of INA. The co-operation is based on an agreement signed in July 2003, MOL said. The state has been in talks with MOL on the sale of its stake in INA. The transaction could involve a share swap.

In August, analysts quoted in the Hungarian and Croatian press said MOL was likely to pay between HRK 2,600 and HRK 3,300 per share for the stake. Econews calculated that the HRK 2,800 offer will cost MOL about HUF 281bn.  MOL had capital reserves of HUF 786.9bn, its balance sheet from June 30, 2008 shows.

"MOL’s strategic plan regarding the INA is to improve its business performance and market position in Croatia, South Eastern Europe and in the Adriatic region via supporting focused investments of INA into its own asset base, improvement of its commercial capabilities and enhanced customer orientation," MOL said.

MOL said it aims to increase the supply security of Croatia and would support the necessary, value-creating investments. In the refining segment, MOL will continue to support ongoing upgrade projects at INA's refineries in Sisak and Rijeka. In retail, MOL plans to boost the efficiency and new technologies as well as customer-oriented services at INA's petrol stations. MOL does not intend to change the location of either its own bases or of INA's as a result of the offer.

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