January 19 (SeeNews) - Croatia's government said on Thursday it set up a council to hold negotiations for the potential repurchase of the 49.08% stake in oil and gas company INA [ZSE:INA-R-A] owned by Hungary's MOL.
The eight-member council will be chaired by prime minister Andrej Plenkovic and will also comprise the ministers of foreign affairs, finance, state property management, environment protection and energy, justice and labour, Plenkovic said during the weekly session of the government aired on its website.
"The council will give guidance, take measures, conduct activities, and make proposals to the government in the decision making process concerning the preparation, implementation and financing of the procedure for the possible buyout of MOL's shares in INA", Plenkovic said.
He also called on all who think they have a good model for a buyback operation to present it publicly.
"The council will explore all options and will choose the best, the most efficient and feasible option, keeping in mind that we don't want this transaction to generate new public debt", Plenkovic explained.
Last month, Plenkovic unveiled a government decision to regain ownership of MOL's shareholding interest in INA after it emerged that MOL had won an arbitration case launched by Croatia before the arbitral tribunal of the United Nations Commission on International Trade Law (UNCITRAL). The government controls 44.84% of INA, while institutional and private investors own 6.08%.
In 2014, Croatia filed for international arbitration against MOL with the aim to cancel a 2009 deal that allowed the Hungarian oil and gas group to take over INA's management without holding a majority stake.