INA no longer the only one in the game, other buyers interested in Energopetrol shares

Croatian INA recently requested to take over 22 percent of shares in Energopetrol, owned by the Government of the Federation of BiH. If INA buys the Government's stake in the once most powerful BiH oil company, it will have an ownership package of 89 percent, with 11 percent held by small shareholders.

According to Patria agency's findings, the Croatian company is no longer the only one interested in the Government's shares in Energopetrol. Unofficially, the Government could soon receive offers from several other renowned oil companies, including a domestic oil distributor.

INA's offer for the Government's shares in EP at the end of 2016 was only 2.30 KM per share, or a total of 4,169,127 KM for 1,812,664 shares in Energopetrol, while a new buyer's offer would exceed 50 million euros. The nominal value of EP shares is around 12 KM, although, according to experts, even that is far below the actual value of Energopetrol shares, so the 50 million euros mentioned is not as astronomical a figure as it seems.

- Energopetrol is indeed an indebted company. There is talk of a total loss of around 209 million KM, which is 120 million KM above Energopetrol's capital. However, with good organization, this debt can be settled relatively quickly - states NAP's source from this company.

- Energopetrol has the best retail network in BiH, so it is simply unrealistic to say that the company has no prospects - adds this source.

The potential investor would reportedly offer to buy both the Government's shares and the shares of small shareholders, which together represent a not insignificant package of 33 percent.

A new buyer would also suit the Government of FBiH. Advisor to Prime Minister Fadil Novalić, Aida Soko, recently stated that it is not excluded that EP could go into bankruptcy due to high debt.

And only INA, to which EP owes the most, can make such a decision. We remind you that although it was obliged by contract to invest in EP, INA has been giving the company loans with high interest rates all along since entering EP, which created EP's debt to INA.

In her comment, Soko added that, in addition to selling shares, the Government is also interested in ensuring that EP workers remain in their jobs. Bankruptcy would mean the opposite of that.

By selling its stake to a new investor, the Government would receive more money for the shares in EP than INA offers, but also retain much-needed jobs.