ZAGREB, January 18, 2019 – The Uljanik Group’s board chairman Emil Bulić told the press on Thursday that the reason for the prolongation of an in-depth analysis of the Pula-based shipyard until January 24 was the great interest shown by potential investors.
The Uljanik shipyard said today that the due diligence period had been extended until January 24 following additional interest shown by potential investors.
“Data room can be accessed on a working day from 0800-1800 hrs and also on Saturday 19th January 2019 from 0900-1300 hrs. Deadline for submitting the Offers for strategic partnership remains unchanged i.e. by 25th January 2019 until 2000 hrs (CET),” reads a press release issued by the group on the Zagreb Stock Exchange (ZSE).
Economy Minister Darko Horvat said last week that intensive talks were under way with several partners and that it would be clear by January 25 whether they would eventually make a financial offer. He added then that “two serious partners” were conducting due diligence.
When asked by the press to identify the potential investors, Bulić said today that he could not give a more specific answer, citing confidentiality.
Due to the sensitivity of the whole process, all interested parties who visited the data room signed a confidentiality statement.
Bulić said that representatives of five potential investors had to date entered the data room of the Uljanik Group that includes the shipyard in Pula and one more dock, 3.Maj in Rijeka. He declined to comment on local media speculations that executives of a large Chinese shipyard and several small docks in Germany were among those possible investors.
“Croatia’s largest shipbuilder Uljanik, which is trying to attract investors to stay afloat, extended a due diligence process until late next week after drawing the interest of potential strategic partners,” Reuters reported today.
“Local media reported that there were potential investors from Ukraine, Italy, Germany, China and Australia for Uljanik, which is 25 percent state-owned,” according to Reuters.
The news agency says that the Uljanik Group “has been on the brink of bankruptcy after facing liquidity problems over the past 12 months, which led to two strikes by its workers in the second half of last year over unpaid wages.”
In January last year, the Croatian government helped it stay afloat with state guarantees for a loan worth 96 million euro (111 million dollars), while previous governments guaranteed other loans extended to Uljanik, which is now putting pressure on public finances. Under European Union state aid rules, no further state guarantees or direct payments from the budget are allowed, Reuters says.
More news on the Uljanik shipyard can be found in the Business section.
