Croatia: Power utility to sell 25% of its shares, regional market expansion as strategy, SEE Energy News
Croatia will offer this year for sale 25 percent of the Croatian Electric Power Industry(HEP)through an initial public offer (IPO) in London and Zagreb, , and it could announce a new competition for the Croatian Postal Bank (HPB) in June, stated Mladen Pejnovic.
The government expects to gain 250 to 400 MEUR by selling shares in HEP , which would be used then for reinvestment in the company, said Pejnovic the Head of the National Office for State Property Management (DUUDI).
Pejnovic outlines that HEP plan to buy property in Slovenia, Bosnia and Herzegovina and Montenegro.
“HEP had good results last year and now it is important that the company should be directed through the development of the Croatian market in the region”, said the head of DUUDI.
According to him, investment banks and funds in Europe and the United States have already shown interest, and business consultancy in this transaction will be carried out by Morgan Stanley, Bank of Zagreb and Sberbank.
Croatia could also announce a new competition already in June for the Croatian Postal Bank (HPB), the last major state-owned bank, adds Pejnovic.
“In the past selling attempt we tried to increase budget revenues, but the sale did not go well”, noted Pejnović. “This time we should not be satisfied with the recapitalization”, he added. According to him, HPB needs to raise capital by 73 MEUR, to a total of 105 MEUR, and also the state-owned enterprises may be able to participate.in the competition