ZAGREB, March 26, 2018 – The Uljanik shipyard stated on Monday it had received several letters of intent from potential investors and that now it was up to the management to put forward its proposal about a strategic partner to the supervisory board, which is expected to make a final decision on Wednesday.
The Pula-based shipyard released a press release via the Zagreb Stock Exchange on Monday announcing the completion of the process of gathering binding letters of intent. “In the period from 15th February 2018 to 23rd March 2018, a due diligence analysis was carried out in Uljanik by interested potential investors. Interested investors were invited to submit their Letters of Intent by 23rd March 2018. Uljanik d.d. has received Letters of Intent from several interested investors. The Management Board will inform the labour unions regarding Letters of Intent received and will then send their suggestion on the selection of a strategic partner to the Supervisory Board of ULJANIK d.d. for adoption during the meeting that will be held on 28th March 2018,” according to the press release.
So far, only Danko Končar, the owner of the Kermas Group, has confirmed that he submitted a binding offer. The businessman told the Jutarnji List daily this weekend that his company had sent an offer for strategic partnership in transforming the Uljanik Group and the Rijeka-based 3. Maj Shipyard and in defining a programme of restructuring the Uljanik shipyard in cooperation with the government.
In mid-December, Uljanik opened its data room to potential investors interested in injecting fresh capital in the company. In mid-February, the shareholders in Pula’s Uljanik shipyard decided at an extraordinary assembly to increase equity by between 180 and 302.22 million kuna, saying that the shipyard was looking for a strategic partner that would invest about 100 million euro.
It was then reported that letters of intent to invest in Uljanik had been submitted by the Kermas Energija company and Italy’s Palumbo Group. The Italian shipyard Fincantieri from Monfalcone and the Dutch Damen Group were alleged to be checking Uljanik and had not officially submitted letters of intent then.
On 11 January, the government authorised the Finance Ministry to issue a state guarantee in the amount of 96 million euro in favour of Croatian Postal Bank (Hrvatska Poštanska Banka) and/or some other commercial banks in the country and/or abroad for a credit commitment of Uljanik for the implementation of a restructuring process as well as financial consolidation of the company.
Finance Minister Zdravko Marić said then that Uljanik could be categorised as an enterprise in financial trouble, having in mind the fact that the shipyard’s survival would not be possible without state intervention. Economy Minister Martina Dalić reiterated that the state aid would be activated only after the European Commission gave its go-ahead, and the loan to the above-mentioned lenders had to be paid back within six months or in the said period the shipyard had to draw up the restructuring plan which included the selection of a strategic partner for the Uljanik Group.
