INA

INA management board chair comments on situation regarding company

11.08.2011 u 13:04

Bionic
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In an interview with the prominent Hungarian business magazine HVG on Thursday, INA Management Board chair Zoltan Aldott commented on the Croatian government's decision to revoke INA's minerals exploration permit, the company's gas business, and the results of an investigation by Croatia's financial services supervisory agency HANFA into an acquisition of INA shares by the Hungarian oil and gas company MOL.

MOL is the biggest shareholder in INA with a 47.46 percent stake and an option for an additional 1.6 percent, while the Croatian government owns 44.84 percent.

Relations between MOL and the Croatian government have been strained over management rights, in particular since MOL's failed attempt to take majority control in December last year.

Asked about the government's decision to withdraw INA's permit for minerals exploration at three sites, Aldott said INA was not happy about it because it did not contribute to the further strengthening of its market position, which he said was a goal of the two biggest shareholders.

"... In the last two years we managed to stabilise and significantly improve our operations, with unprecedented development in the Rijeka refinery and in Syria. Also, INA is the only company which has the know-how and equipment for similar exploration and production, and now it also has the necessary funds for it. Who else but us would be doing it?," Aldott asked.

Speaking of the findings of HANFA's investigation into an acquisition of INA shares by MOL, Aldott said that at the end of the 25-day investigation, certain obligations were imposed, such as the need to amend corporate rules on the handling of privileged information.

"We are now discussing a solution despite the fact that INA's standards of disclosure are already the same as those of any central or western European company. After the suspension (by HANFA) of trading in INA shares (on the Zagreb Stock Exchange), the company published two quarterly reports, containing equally good results. It makes no sense that those who wanted to buy or sell INA shares based on those reports, were forced, due to the suspension of trading by HANFA, to trade in shares in a nontransparent manner, via online advertisements. Such things compromise the seriousness of the entire Croatian capital market," said Aldott.

He noted that HANFA was not applying the same criteria to all Croatian companies, considering that it was not concerned about the fact that the Dioki petrochemicals producer had been unable or unwilling to pay the purchase price of ethane and natural gas supplied by INA for years.

Aldott also commented on INA's loss-making gas business, which under a 2009 agreement was to be taken over by the Croatian government, saying that the matter had still not been resolved and that INA would see if it paid to continue maintaining the gas business on its own, or include a partner, in case the government failed to buy the gas business.

Asked if he could become interesting to investigating bodies like the other two signatories to the June 2009 agreement with INA on MOL's management rights in INA (Croatia's former economy minister Damir Polancec is suspected of corruption, while MOL Management Board chair Zsolt Hernadi, according to Croatian media reports, has allegedly given bribes), Aldott said that he had been living in Zagreb for more than a year and that he did not see that disagreements over management rights in INA had a personal context.

"The situation regarding INA does not leave the impression of being overly tense, contrary to what is implied primarily by Croatian media, as well as by Hungarian media. I am trying to focus on the company's progress, and I believe the Croatian government, which holds a 44.84 percent stake in INA, agrees with that," Aldott said in the interview.