ADVERTISEMENT

Bosnia sells Energopetrol to MOL-INA team

Deals

The government, pressured by a bank's foreclosure on the retailer's long-overdue loan, said late on Thursday it had accepted a draft agreement initialled by MOL , INA (Industria Nafte d.d.) and its commission on the sale of the company, which has Bosnia's largest fuel retail network, Reuters reported. The consortium agreed to pay 10.2 million Bosnian marka ($6.7 million) for the majority stake and 60.2 million marka for servicing debt, including 14.6 million marka in reserves. Energopetrol has 66 service stations. The agreement needs a go-ahead from Energopetrol's supervisory board and shareholders' assembly and then needs to be signed by Federation Prime Minister Ahmet Hadzipasic, the government said in a statement. It did not mention possible dates. Under the contract, the MOL/INA consortium would acquire a 67% stake in the retailer, while the government and small shareholders would keep stakes of 22% and 11% respectively over the next three years. MOL/INA have also pledged 150 million marka in investment, which would not affect the company's ownership structure, and to cover the company's losses in 2005-2006, the government said. The deal is regarded as the biggest sell-off of the year, and officials say they hope it will revive a stalled privatisation process in the Balkan country, which needs foreign investment to speed up economic recovery. Bank Austria Creditanstalt announced in May it would foreclose on a 20 million marka loan backed by 20 Energopetrol's service stations and its main office building since the government had failed to complete the deal. The bank blocked Energopetrol's accounts last week, but it said that it would stop the foreclosure if a deal were reached. "Since the deal has been agreed, we expect the bank to unblock our accounts," Nusret Mamic of the Energopetrol's trade union told the Dnevni Avaz newspaper on Thursday. (Portfolio)

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.