PPD and INA signed an Agreement on capital investment in Petrokemija
The objective of the investment is to ensure a continued development of the fertilizer production at Petrokemija. Acting in good faith, the partners will work together and make every effort to enable Petrokemija to continue its activities.31.10.2018.
Zagreb, 31 October 2018 – Prvo Plinarsko Društvo (PPD) and INA as Investors signed an Agreement on capital investment in Petrokemija with CERP, the Centre for Restructuring and Sales, as the representative of the Republic of Croatia.
The companies paid 300 million kuna for 30,000,000 Petrokemija shares (each investor paying 150 million kuna) that make them majority owners of Petrokemija with a share of over 50 percent and corresponding governing rights. The acquisition was effected by PPD and INA – Terra Mineralna Gnojiva d.d. (TMG) as a partnership company to conduct its business according to the protocols adopted by the signed shareholder agreement. By this acquisition, Petrokemija was saved from bankruptcy. Representatives of two largest shareholders in INA Supervisory Board all voted in favour of the acquisition.
The objective of the investment is to make sure Petrokemija can continue to produce and improve the production of artificial fertilizers. Acting in good faith, the partners will make all efforts to help Petrokemija continue the company’s activities. Therefore, during the following period, INA and PPD will focus on improving Petrokemija’s finances by enhancing the Petrokemija’s product portfolio, streamlining business costs to sustainable levels, as well as refinancing to pay the inherited debts and optimize the production processes.
Mr Sándor Fasimon, President of INA Management Board, said that "INA has proved again to be a stable and reliable partner for Petrokemija, the Croatian economy and the local community. With our partners, we will be able to secure a sustainable and market oriented production at Petrokemija to the benefit of both Petrokemija and the national economy. "
"During recent years, PPD has significantly contributed to the efforts of maintaining the production process in Petrokemija. We have remained committed to this goal despite the difficulties by signing and implementing the agreement on this capital investment. As a Croatian business company, we are ready to deploy our expertise and our capital to the best interest of Petrokemija and the city of Kutina, and the Croatian economy, which needs advanced technological and business opportunities. We feel certain that we will, working together with our partners, ensure the survival and the future of Petrokemija", said Mr Pavao Vujnovac, President of the Management Board of PPD.