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OTP sends Croatian food company notice to pay

Hungary's OTP Bank has called upon Croatian food company Podravka to pay €11.58 million after it sold its company shares to Croatian pension funds, the Croatian company announced on the website of the Zagreb Stock Exchange.

OTP sold 576,880 Podravka shares for 312.87 Croatian kuna (€42) each to Croatian pension funds, which have now increased their stake in the company to 29.6% from 21.7%. The Croatian state holds a 26% stake in Podravka.

OTP received the Podravka shares after the Croatian company was unable to pay back a €37 million loan last September.

The shares sold functioned as collateral for the debt and the contract stipulates that Podravka will pay any difference between the purchase and sale price of the shares.