What is the fate of government shares: Ina bought Energopetrol stake from MOL for only 500,000 KM

Ina recently acquired 33.5 percent ownership in the Bosnian-Herzegovinian oil company Energopetrol, from its Hungarian partner MOL. It is now officially the majority owner of Energopetrol and the largest single distributor of petroleum products in BiH. Ina owns 101 retail gas stations in BiH. The Government of the Federation of BiH and small shareholders still own shares in Energopetrol. All together around 33 percent, writes Patria. 

It is interesting that Ina bought the shares from MOL off-exchange. With the help of a Sarajevo brokerage house. And for just over half a million KM. In 2006, MOL paid 36 million KM for a 33.5 percent ownership in Energopetrol, and now it has sold those shares for just over 500,000 KM.

This is one of the reasons why the sale was conducted off-exchange. Because if the sale had gone public, other buyers besides Ina would have appeared at the auction for MOL's shares in Energopetrol. Who wouldn't agree to have a 30 percent ownership in Energopetrol for half a million KM. 

There are many unknowns regarding Ina's role in the BiH market. The contract signed between the Government of the Federation of BiH 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, it 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 2013, the consortium dealt another blow to the citizens of the Federation of BiH. Ina-MOL initiated an international arbitration proceeding in which they sought damages of around 60 million KM from the Government of the Federation of BiH because, as they claim, the Government of the Federation of BiH failed to fulfill its obligations to cover debts and provide for surplus Energopetrol employees.

Suvad Osmanagić, advisor to Prime Minister Fadil Novalić, recently announced that Ina-MOL will withdraw the arbitration before the court in France. He said that it is a "done deal" that will be resolved by mid-June this year at the latest. Both the Government of the Federation of BiH and Ina are hiding the progress of the arbitration today. Ina told Patria that they have no comment on this issue. The Information Office of the Government of the Federation of BiH also claims to have no information regarding this case.

It is currently unknown what the fate of the remaining 20 percent of government shares in Energopetrol will be. If the Government of Prime Minister Fadil Novalić sells them at the price Ina bought shares from MOL in mid-July, the Croatian company will acquire a new, not insignificant package of shares in Energopetrol for just over 150,000 KM, writes Patria.