Hungarian-Russian race seen in Croatia for INA stake (2)

http://portfolio.hu/en/cikkek.tdp?k=1&i=19247

Hungarian oil and gas group MOL strives to increase its 47.2% stake in Croatian oil company INA to an absolute majority (50% + one share) via the settlement of INA’s debt to the state, Hungarian weekly HVG reported on Thursday. The paper said Russia’s Gazprom is also looking for opportunities in Croatia.

According to HVG, MOL would gain absolute majority in INA by receiving corporate bonds from the state in exchange for settling a cc. 1.8 billion kuna debt and it would convert the bonds into capital stock later.

HVG also said Russian energy companies are also exploring investment possibilities in Croatia. Among others, Russia’s gas export monopoly Gazprom has interest in INA and would get a stake in it at the expense of MOL.

2009.12.28 09:09
INA clears debt to state

2009.12.16 16:38
Hungary MOL says INA gas unit takeover by Croatia put off to end-2010 (2)

MOL’s response (update)

"MOL has extended a corporate loan to INA from its own resources until the end of 2009 so as to help INA settle its tax debt."

"Deciding on the means to settle the remaining tax debt by 31 March constitutes part of ongoing negotiations and investigations therefore the financing method has not been finalised as yet."

The bond conversion part left us slightly confused, but we do believe Russian interest for INA is an entirely realistic assumption.