Croatian PM comments on INA dividend proposal

Deals

Croatian Prime Minister Zoran Milanovic said late Tuesday that he needs more time to study a proposal for the payment of an extraordinary dividend by oil and gas company INA, Croatian news agency HINA was cited by Hungarian news agency MTI today.

Hungary's MOL, which holds a little less than a controlling stake in INA, made the proposal to pay a HRK 2 bln dividend — nearly all of the company's profit reserves — earlier Tuesday.

"I have to see what exactly they said, but it's not immediately clear to me. Such earnings, at least such was the policy, were usually left in the company for further investments," HINA quoted Milanovic as saying.

MOL and the state of Croatia, which holds about 45% of INA, have been at odds for years. Among the sources of tension is a perceived lack of investment in the company by MOL, the state's failure to take over INA's loss-making gas business, and charges of corruption.

Both stakeholders are in arbitration, and MOL CFO Jozsef Simola said days earlier that MOL would consider selling its stake in INA if talks with the government failed. Milanovic said the state could not reacquire MOL's stake in INA because it would cost "several billion euros".

"I'm sure that people in Croatia are aware that Croatia doesn't have that money, but we will insist that Croatia has refining capacity," he said. He called for continued efforts to reach an agreement with MOL. "We should sit down at the negotiating table, even in another format if that's possible," he said, HINA reported.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.