Energopetrol shares rise to 10 KM, indicating INA's 2.30 KM offer was unrealistic

Energopetrol DD Sarajevo shares rose to 10 KM, or by 33.33 percent, which was the highest turnover achieved yesterday on the Sarajevo Stock Exchange.
Economists warn that this is proof that Energopetrol shares are very attractive, and that the Government of the Federation of Bosnia and Herzegovina should not sell its stake in this oil company at a miserably low price, as demanded by the Zagreb-based oil company INA, which is the majority owner of Energopetrol, writes NAP.  

Last month, the Croatian oil company offered slightly more than four million KM for 33 percent of Energopetrol shares, owned by the Government of the Federation of Bosnia and Herzegovina and minority shareholders. 

INA owns 67 percent of Energopetrol shares, the Government of the Federation of Bosnia and Herzegovina owns 20 percent, and minority shareholders own 13 percent. The Croatian oil company offered to buy the remaining package of shares in the former BiH oil giant, after which it would become the 100 percent owner of Energopetrol.  

INA offered only 2.30 KM per share for Energopetrol shares. Thus, for 1,812,664 Energopetrol shares owned by the Government of the Federation of Bosnia and Herzegovina and minority shareholders, INA offered only 4,169,127 KM. A high-ranking source from Energopetrol told Patria that this is an unrealistically low price. The Government of the Federation of Bosnia and Herzegovina should first seek a revision of the valuation of Energopetrol's assets, and only then discuss the sale.

- If we were to revise the value of Energopetrol's assets, we would see that the company's assets are now valued several times less than their actual value. If we knew the real value of Energopetrol's assets, the share prices would also significantly increase. Then, the eventual sale of the Government's shares in Energopetrol would make some sense – explains this source.

The majority owner of Energopetrol is INA, with 67 percent of shares.

There are many unknowns surrounding INA's role in the BiH market. The INA-MOL consortium recapitalized Energopetrol in 2006, and as early as 2009, the Financial Police sent a report on criminal offenses committed during the recapitalization to the Cantonal Prosecutor's Office of Sarajevo.

The contract signed between the Government of the Federation of Bosnia and Herzegovina and the Croatian-Hungarian consortium INA-MOL has not been respected from the beginning.

The consortium did not invest the money it committed to in the contract into Energopetrol. Instead of investments, the Croatian-Hungarian consortium burdened the once strongest BiH oil company with new debts.

Energopetrol's debts have grown to approximately 115 million KM above the company's capital value to date.

In mid-July, the Croatian oil company took over 33.5 percent ownership in Energopetrol from its Hungarian partner MOL. After that, it officially became the majority owner of Energopetrol and the largest individual distributor of petroleum products in BiH with 101 retail gas stations.