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MOL board authorizes preparations for sale of INA stake

Issues

The board of directors of Hungarian oil and gas company MOL has authorized the company's executive board to start preparations for the sale of MOL's stake in Croatian oil company INA, MOL announced on Friday evening. 

MOL's board of directors also authorized the company's executive board to conclude an agreement with the Croatian government that can lead to value creation through the execution of INA's growth strategy. MOL owns a little under 50% of INA's shares. The Croatian state is the other big stakeholder.

The two shareholders have often been at odds over the way the company is managed, and tensions rose early in October, after Croatian police issued an arrest warrant for MOL chairman-CEO Zsolt Hernádi, who is suspected of bribing former Croatian Prime Minister Ivo Sanader to give MOL management rights in INA.

“I start from the fact that Croatia has a right of preemption and that is how we see it, but the question in fact is theoretical, said Croatian Prime Minister Zoran Milanovic as quoted by news agency HINA“We are talking about several billion euros that need to be raised if the shares are put on sale, and the government has no right to embark on such business adventurism.”

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