November 28 (SeeNews) - Croatian hotel and tourism group Valamar Riviera [ZSE:RIVP-R-A] and pension insurance fund manager PBZ Croatia Osiguranje have decided to increase the share capital of hotel operator Helios Faros to 236 million kuna ($35 million/32 million euro) from 97 million kuna, Valamar said.
The capital hike decision taken at a Helios Faros' shareholders meeting held on November 26, Valamar said in a statement earlier this week.
Valamar is investing 24.4 million kuna in the capital increase, while PBZ Croatia Osiguranje is providing the remaining 114.9 million kuna.
Upon impementation of the increase, Valamar will hold a 20% stake in Helios Faros versus 77.73% belonging to PBZ Croatia Osiguranje.
The share capital increase marks the start of a five-year business plan worth 692 million kuna, which envisages investments in the reconstruction and renovation of the hotel and tourism facilities and amenities of Helios Faros under the operational management of Valamar.
Helios Faros escaped bankruptcy in July when Valamar Riviera and PBZ Croatia Osiguranje acquired stakes in the company through repaying Helios' debt to creditors.
Back then, Valamar acquired a 23.61% ownership stake and PBZ Croatia Osiguranje a 70.83% stake in Hvar-based Helios, with the two new owners pledging to jointly manage Helios Faros' capacities, setting for a new phase in the development of tourism in Stari Grad on Hvar Island.
As earlier reported, the new owners plan to renovate two Helios Faros' hotels, Arkada and Lavanda, of around 700 accommodation units, thus repositioning the hotel operator on the map of premium accommodation sites.
(1 euro = 7.44105 kuna)