The Croatian oil company INA on Tuesday made public a decision by the Securities Commission of the Federation of Bosnia and Herzegovina approving the publication of INA's bid for the takeover of a 33% stake in the Sarajevo-based Energopetrol oil company.
INA owns 67% of Energopetrol shares and the subject of the bid is the remaining 33% of shares.
The price of one share is 2.30 convertible marks (EUR 1.17).
The INA-MOL consortium in 2006 bought from the Federation of Bosnia and Herzegovina government a majority, 67% stake in Energopetrol, with each partner holding a 33.5% interest.
The INA-MOL consortium paid 36 million euros for the acquisition, of which EUR 30.79 million was paid to recapitalise Energopetrol and the rest was paid to the Federation government for the takeover of the majority interest in the company.
In July this year INA and MOL signed a contract whereby INA took over the 33.50% of Energopetrol's shares owned by MOL, thus increasing its stake to 67% and becoming the company's majority owner.
Relations between the INA-MOL consortium and the Federation of Bosnia and Herzegovina are burdened by a problem that arose from a 2013 decision of the consortium to launch arbitration proceedings against the government of that Bosniak-Croat entity before an international commercial court in Paris. The dispute arose after Energopetrol workers sued the company for not paying their salaries and other benefits from the period before the company was sold. The claims amounted to EUR 32.7 million and INA-MOL insisted that the debt should be settled by Energopetrol's previous majority owner, the entity government.
In June this year a settlement was reportedly reached under which INA and MOL were to give up on the arbitration proceedings.