Tug of War Between MOL, Croatian Government Continues

Hungary-based MOL asked Croatia-focused INA to press ahead with an extraordinary total dividend payout, distributing among the shareholders around 260 million euros.  

‘MOL proposes to the Annual General Meeting to vote in favour of two billion kuna (EUR 260 million), the payment of dividends from retained earnings’ the Hungarian company wrote on Tuesday.

According to MOL, the Croatian economy ministry forced INA out of business in the Sava river and in other areas of the country. 

‘The shareholders have come to understand that the Department does not currently support an investor-friendly climate in Croatia’ MOL wrote.

INA Management Board downplayed the current tensions.

In a note released after a shareholders meeting on Tuesday, the Zagreb-based company wrote that the Croatian Government and MOL - which are the two main shareholders - agreed on the Strategy Discussion Paper, which suggests an increase in investments and a simultaneous growth in all business divisions. 

‘The presented material was unanimously agreed upon by the Management Board with some questions still remaining open’ INA wrote after the meeting. 

BONE OF CONTENTION

On Tuesday, MOL said it saved INA from bankruptcy, adding it could soon try to ‘realise return of … previous investments.’ 

According to several reports, the Croatian Ministry of Economy hit back, saying that INA is running into problems and that MOL’s behaviour is having a negative impact on INA’s reserves, production, processing and sales. 

Croatian authorities said that Budapest is trying to stop a Croatian growth, which could soon translate into a strong Zagreb-based regional hub.

MOL could sell its shares to Russia, with some experts saying that both Gazprom and Rosneft could be interested in the acquisition. Washington sees it as a Hungarian drift into Moscow’s sphere of influence. 

MOL’s shares could be of interest also for other players. The Croatian government could try to buy MOL’s 49.08% stake. America’s Klesch Group is reportedly interested too.