Phosphoric Acid, Phosphates & Fertilizers Experts

Austria’s Borealis in race for Croatia’s Petrokemija

ZAGREB (Croatia), July 7 (SeeNews) – Austria’s Borealis is interested in the privatisation of Croatian fertilizer producer Petrokemija under Petrokemija’s recent call for recapitalisation, Zagreb-based media reported on Friday.

Other potential investors include Croatian gas distribution company Prvo Plinarsko Drustvo (PPD) and Croatian oil and gas company INA, news portal Poslovni.hr said.

All three companies have placed bids to acquire Petrokemija and are due to take part in the due diligence processes being organised in the company between July 10 and August 15, according to Poslovni.hr.

PPD is said to be in talks with Borealis for a possible joint approach in the second round of bidding. According to sources of Poslovni, however, the Austrian company is more likely to approach the privatisation process alone, backed by the European Bank for Reconstruction and Development.

Following the completion of the in-depth analysis all interested investors will be invited to submit their binding bids by September 1.

The recapitalisation of Petrokemija was agreed with the Croatian government in April when it issued guarantees for two long-term loan deals signed with state-owned development bank HBOR and Hrvatska Postanska Banka, as well as a short-term financing deal with Erste&Steiermarkische Bank.

The aim of the recapitalisation is to modernise the manufacturing facilities, to provide sources of financing, to improve Petrokemija’s position on the domestic and regional markets, and to raise the level of efficiency of maintenance, logistics and other services.

The government controls some 80% of Petrokemija.

Vienna-headquartered Borealis currently employs around 6,600 and operates in over 120 countries. The company is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers.

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