Croatia hits pause on INA buyout

Deals

Image by lordzg / Shutterstock.com

Croatia's government has decided to suspend efforts to buy out Hungarian oil and gas company MOL's stake in Croatian peer INA while it seeks the annulment of an international arbitration court decision in MOL's favor, Prime Minister Andrej Plenkovic said at a cabinet meeting on Thursday, according to a report by Hungarian news agency MTI.

Plenkovic said Croatia would ask Switzerland's Supreme Court to annul the decision by the United Nations Commission on International Trade Law (UNCITRAL) in light of a ruling in October by Croatia's highest court that upheld the conviction on charges of graft of Ivo Sanader, the country's former prime minister.

Sanader was charged with accepting a bribe a decade earlier to give MOL management rights in INA.

In light of the Croatian court's ruling, Plenkovic said agreements between MOL and the state of Croatia are untenable.

In a ruling late in 2016, UNCITRAL dismissed the Croatian government's claims against MOL concerning graft and breach of contract. Plenkovic said after the decision that Croatia's government would seek to buy out MOL's stake in INA.

MOL holds 49.08% of INA's shares but exercises management rights in the company. The state of Croatia owns a 44.84% stake in the company.

ADVERTISEMENT

Hungary GDP up 6.5% y.o.y. in Q2 Analysis

Hungary GDP up 6.5% y.o.y. in Q2

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

Muni Council Organizing Meeting to Improve Air Quality City

Muni Council Organizing Meeting to Improve Air Quality

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.