April 3 (SeeNews) - Bosnia's Serb Republic is planning to sell its 42.3% stake in local fuel trader Krajinapetrol [BANJ:KRPT-R-A] by the end of the year, local media reported.
The Republic's Investment-Development Bank, via its fund Akcijski Fond, is the largest single shareholder in Krajinapetrol.
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The sale of the Krajinapetrol stake is envisaged in the 2020 business plan of the Investment-Development Bank, news wire Capital.ba reported earlier this week quoting bank officials.
The bank has already hired an adviser to help it prepare the offer for the sale of its shares in Krajinapetrol, as well as to evaluate the company's capital as of the end of 2019, the report said.
Banja Luka bourse data showed on Friday that Bosnian wholesaler of oil products NES is the second largest shareholder in Krajinapetrol with a 32.3% stake, followed by Croatia's energy company INA with 9.7%. The remainder is in the hands of smal shareholders.
According to Capital.ba, both NES and INA will be interested in raising their shareholding.
In February, NES increased its stake in Krajinapetrol only marginally - to 32.271% from 32.245%, following a takeover bid, which was not supported by INA's representative in the Krajinapetrol management board.
In November, NES acquired 32.24% of the share capital of Krajinapetrol, which triggered the obligation to launch the takeover bid for the remaining shares.
Krajinapetrol's net profit rose to 1.3 million marka ($717,000/661,000 euro) in 2019, from 757,100 marka a year earlier.
Its shares last traded on the Banja Luka bourse on February 20, closing up 3.13% to 0.856 marka.
The Serb Republic is one of the two entities that make up Bosnia and Herzegovina. The other is the Federation.
(1 euro = 1.95583 marka)