New open competition for privatization of five shipyards in Croatia

Croatian Government decided to announce the second open competition for privatization of majority shares in five Croatian shipyards prior to February 15th, 2010, while Pula-based shipyard Uljanik will not be included in that offer.

According to the Government's decision, the open competition for privatization, under special terms, for 1 HRK, will be announced for the majority share of 95.24% in Brodotrogir, as well as 99.54% in Kraljevica, 83.32% in Rijeka-based 3. maj and 99.78% in Shipbuilding Industry Split.

Brodosplit is recommended to announce the open competition for sale of 100% share in Brodosplit - Shipyard for Special Facilities prior to February 15th, 2010, at the nominal price of 18.16m HRK (2.48m EUR).

The deadline for submission of bids after the announcement of the open competition will be 60 days.

The Minister of Economy of Croatia, Đuro Popijač, explained that the interest in acquisition of Pula-based Uljanik was expressed by the company's management, so that the decision on privatization of Uljanik would be made the next week, after the consultations with European Union. As Popijač explained, Uljanik will be sold under different terms because it achieves better results than all other shipyards.

However, people from Uljanik's administration denied that they had submitted the bid for acquisition of the shipyard. They explained that the only thing they had asked was that the starting price from the first round of privatization be brought in accord with the situation in the market.

The Government set the price of 300 HRK per stock for privatization of 59.25% of stocks of Uljanik in the first round of the privatization.

On that occasion, three bids were submitted - one for Brodosplit, one for Brodotro and one for Rijeka-based 3. maj.

The bids were rejected because the commission that was in charge of privatization of the shipyards came to the conclusion that none of them satisfied the mandatory terms of the open competition.