Two non-binding offers in the preliminary phase of establishing the interest of the potential investors in increasing the capital of Croatia Airlines have been received, the company reported through Zagreb Stock Exchange today.
The company has not, however, reported on who has sent the two non-binding offers, nor how big of an investment they’re offering. The Government has decided in February to research the interest and find a strategic partner, as well as establish the Commission for the implementation and the process of selection for Croatia Airlines. Croatia Airlines is the state-owned (over 95 per cent of the shares) flag carrier airline of Croatia.
At the tender which had the purpose to select the financial adviser for the increase of the capital process, a consortium lead by Privredna Banka Zagreb and DVB Bank SE (part of Germany-based DZ BANK Group) was selected.
The capital increase process is supposed to start before June 2020, based on the open process in which the private investors will have an advantage. In September, the government also decided to provide financial help to the company, to help them stabilise their business before the influx of the funds in 2020. They’ve already received the first portion of those promised funds, the 100 million kunas, and the remainder of the 250 million will be paid in 2020, given from the Croatian national budget reserve funds.
The net loss of Croatia Airlines increased again in 2019, and it’s almost at 50 million kunas in the first nine months of 2019m which is a significant increase from last year’s 35 million kunas of loss in the same period. The number of passengers has also decreased, down 0.1% on the year. The company’s stock is not very popular at the Zagreb Stock Exchange, as the last sale happened on December 19th, closing at 25.29% lower at 26 kunas.
