Minister believes IPO for HAC ONC to be finalised by year's end

By the end of this year, money could be collected through the initial public offering (IPO) of shares in the HAC ONC motorway maintenance and toll company, intended to cover a part of the debt of the Croatian Motorways (HAC) and Rijeka-Zagreb Motorway (ARZ) companies

The bill regulating the IPO for HAC ONC will be before the Cabinet in 14 days, after which it will be forwarded to parliament. After that, the public procurement procedure will be launched to select the best financial arranger for the IPO. This means that the funds may be collected through the IPO by the end of this year and they will be used to cover a portion of the liabilities of HAC and ARZ, Transport and Infrastructure Minister Sinisa Hajdas Doncic said.

In parallel to the IPO process, the transport and infrastructure ministry, the finance ministry and HAC are holding negotiations with the World Bank and the International Bank for Reconstruction and Development on rescheduling the remainder of loans under more favourable terms, he said.

He said that the HAC ONC company was undergoing the second stage of overhauling in order to "be absolutely better prepared operationally and financially for the IPO".

Asked by the press who would be offered shares, the minister said that Croatian citizens, employees and former employees of HAC and ARZ had the pre-emption right, and after that pension funds would be offered shares, and other institutional investors would be able to compete for the rest of the shares, while 3% of the revenues from the IPO would be paid directly into the Croatian War Veterans' Fund.

The government on Thursday greenlighted the launch of procedures for deleveraging of HAC and ARZ through the privatisation of HAC ONC via an initial public offering.

(Text: Hina)

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