Turkey’s Yildirim Holding AS has submitted a binding bid to acquire Petrokemija d.d., Croatia’s biggest fertilizer producer, according to report by Sofia, Bulgaria-based SeeNews, citing Croatian daily newspaper Poslovni Dnevnik. The bid is reported to be valid until Jan. 31
Yildirim is reported to have submitted its bid to Petrokemija’s majority shareholder, Terra Mineralna Gnojiva (TMG), as well to Petrokemija’s other stakeholders, a number of state-owned funds.
TMG, which owns a 54.517 percent stake in Petrokemija, is a joint venture of Croatian oil and gas group INA d.d. and Croatian gas company Prvo Plinarsko Društvo. TMG acquired the stake in Petrokemija 2018 through a capital raise of 300 million kuna (approximately $45 million), according to the report.
Yildirim owns the Turkish fertilizer producer Gemlik Gubre and is Turkeys biggest CAN and ammonia producer, and third largest fertilizer and chemicals trading company
No other details are yet reported on the acquisition bid.
The Poslovni Dnevnik report cited Croatian state-owned fund for enterprise restructuring and privatization CERP has having doubts regarding the bid, citing, among other factors, the current unfavorable time to be holding negotiations with potential investors.
Petrokemija’s ammonia and urea production operations at Kutina are temporarily suspended due to high natural gas prices (GM Dec. 3, 2021). CERP also highlighted the high investments needed to bring the fertilizer company’s production facilities up to the European Union’s environmental standards.
Meanwhile, Petrokemija on Jan. 11 said its management and supervisory board approved proposals to delist its shares from the Zagreb Stock Exchange, and for its management to acquire own shares from the company’s shareholders who vote against the delisting proposal. According to Poslovni Dnevnik report, the delisting could save the company 100,000 kuna.