Deputy Prime Minister Dalić: The buyout of the entire share of MOL in INA contributes to energy security

Economy Minister Martina Dalic has said that the decision to buy out MOL's stock in INA and list 25% shares minus one share of the HEP power provider on the stock exchange will make Croatia's energy security and independence stronger and that all relevant decisions will be made in cooperation with the coalition partner, the Bridge party.

Addressing the press in the government on Tuesday, Dalic said that buying out MOL's interest in INA would enable Croatia to restore its clout in decision-making regarding trends in the petroleum and gas reserves and to have a say in enhancing the energy infrastructure.

She recalls that the shareholders' agreement reached in 2009 and how the INA company is managed do not offer any such possibility for the Croatian state now.

The minister accused Hungary's MOL of failing to deliver on its obligations stemming from the agreements regarding INA's development. Consequently, the reserves of petroleum and gas have kept declining and the quality of the energy infrastructure has been decreasing, she said.

The buyout should be conducive to Croatia's economic security, too, according to Dalic's explanation, having in mind that for years INA has not secured any new concession licence for oil and gas exploration and production.

As for the proposal that the funds for the buyout of MOL's stock in INA should be ensured via an initial public offering (IPO) of 25% minus one share of the HEP power company, Dalic insists that this model will enable the state to retain its influence on the development possibilities of the power provider just as it does now, when it owns 100%.

In addition, the sale of a part of the shares will produce a few positive effects: more transparent doing business and better and more professional governance of the company.

"The listing of the company on the stock exchange is conducive to embracing higher business standards and employment standards," Dalic said, adding that individuals, pension funds and other investors will be able to feel direct benefits from the future development of HEP.

Dalic insists that each of those transactions - the buyout and the IPO model for HEP - makes both economic and national sense that supplement each other.

In late December, Prime Minister Andrej Plenkovic stated that his cabinet was considering buying out the MOL oil company's stake in INA based on the model of an initial public offering (IPO) of HEP power company shares.

Text: Hina

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