December 30 (SeeNews) - Croatia's government may opt for the sale of a 25% stake in state-owned energy utility HEP to raise funds for the planned purchase of the stake in oil and gas company INA [ZSE:INA-R-A] held by Hungary's energy group MOL, Croatian media reported on Friday.
A team within the government has come up with an idea to launch a public tender for the sale of the minority stake in HEP but it is waiting for all coalition partners to approve the idea, news daily Vecernji reported.
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According to the daily, the team has been working out a plan for buying back INA's shares for two months now although prime minister Andrej Plenkovic only announced the possible purchase over the weekend.
Whether the government will decide to sell a stake in HEP to finance the transaction all depends on the price MOL will set for its 49.08% stake in INA. The government controls 44.84% of INA, while institutional and private investors hold a stake of 6.08%.
The government is certain it can sell the stake in HEP within six months under a prepared plan. If the government sells 25% of HEP, it will still control some a stake of 75%.
The government's decision to regain ownership of INA was unveiled after it emerged that MOL had won an arbitration case which Croatia launched against the company before the arbitral tribunal of the United Nations Commission on International Trade Law (UNCITRAL).
In 2014, Croatia filed for international arbitration against MOL with the aim to cancel the 2009 deal that allowed MOL to take over INA's management. Last year, Croatia ordered a retrial of former prime minister Ivo Sanader who had been earlier convicted for taking a bribe from MOL to allow it to acquire a dominant stake in INA.