September 27 (SeeNews) - Croatian holding group Djuro Djakovic [ZSE:DDJH] said on Tuesday it has received a bank confirmation for the payment of the cash portion of its capital increase by Czech investor DD Acquisitions.
The payment was carried out in line with the decision to increase the company's capital through cash and in-kind contributions, Djuro Djakovic said in a filing to the Zagreb bourse.
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It did not disclose the amount of the cash payment in the filing but the Croatian company announced in July that the Czech investor committed to increase Djuro Djakovic's capital by 232 million kuna ($30 million/31 million euro) via a cash contribution of 100 million kuna and an in-kind contribution of 132 million kuna. In exchange DD Acquisitions will become owner of 81.83% of the capital of the Croatian company.
The capital increase is part of Djuro Djakovic's extensive restructuring programme, which the European Comission approved in December 2021. The restructuring programme included a debt-to-equity swap and a state guarantee on potential future commercial claims for a total amount of 57.4 million euro.
Earlier, the European Commission said that DD Acquisition, will participate in the capital increase process of Djuro Djakovic with cash and in-kind contributions of some 64 million euro. Djuro Djakovic representatives were not immediately available to comment.
The company is debt-ridden and the restructuring procedure is necessary to avoid bankruptcy and keep jobs, Vlatko Kesegic, a broker with Fima Vrijednosnice, told SeeNews on Tuesday.
Djuro Djakovic has a diversified industrial portfolio including defence, transport, industry and energy. The core business of the company is the manufacturing of freight wagons for special purposes. Djuro Djakovic, which has more than 700 employees, is located in the eastern part of continental Croatia, in an area with high unemployment and low job creation.
Djuro Djakovic's shares surged 4.71% to 89 kuna on Tuesday afternoon on the Zagreb bourse.
(1 euro = 7.530 Croatian kuna)