Hungary's MOL Group issued a statement on Thursday saying it had purchased shares of the Croatian oil and gas group INA from private investors whenever the conditions met MOL's investment criteria. As regards its stake in INA, it said it had not yet reached a level that would have required it to make any stock exchange announcements.
"Outside the offer period there is no agreement - neither formal nor informal - no regulation or law that would restrict MOL to buy additional INA shares. Indeed, there were private investors who offered their shares to MOL which we accepted and purchased provided that the conditions met MOL's investment criteria. Any purchase of INA shares by MOL is purely based on commitments towards INA and Croatia and has nothing to do with any change of the rights and obligations of the strategic partners in respect of INA," the Hungarian company said.
It said that "there have been many misinterpretations and allegations recently in the Croatian media on INA share-buyings, where MOL faced many unfair attacks causing damage to its reputation" and added that MOL always believed in the potential of INA and that in a strong alliance with the Republic of Croatia it aimed to make INA "a regional champion".
"During the global economic crisis, when INA daily operation was seriously endangered and INA reached its limits, thanks to joint efforts of the strategic partners, The Croatian Government and MOL, INA eventually could stand alive. In the most critical times MOL provided direct cash support to pay salaries and continue the company's investments. After many loss-making years INA finally turned to be a profitable company in 2010," the statement said.
MOL said it had made two offers in the past for the purchase of INA shares from small and private shareholders and that a vast majority of the small shareholders had seized those opportunities. It noted that the offers had been completed in line with the applicable laws.
"MOL also followed the guidance of HANFA not to buy shares on the market during the latest offer, even though we disputed such guidance from the first moment. At that same time MOL also called HANFA's attention to the speculative purchases experienced on the market. MOL believes it is not in the interest of INA if speculative investors build positions with the possible aim to challenge the unity of the shareholding partners in INA," the statement said.
"With respect to its ownership in INA, MOL has not reached any disclosure obligation level yet that would have demanded any stock exchange announcement," MOL said, adding that it had stated many times before that "the Shareholders Agreement between the Government of Croatia and MOL secures the rights of both strategic partners in INA, irrespective of their level of shareholding."
"MOL will continue to protect its partnership with the Government of Croatia. This cooperation is key to make INA a strong, competitive and successful Croatian flagship company, a regional champion which everyone can be proud of," the statement concluded.
Earlier in the day, the Croatian Financial Services Supervisory Agency (HANFA) ordered the Zagreb Stock Exchange to suspend, without delay, trading in INA shares until the close of the trading day on May 6.
HANFA said that based on the results of its monitoring of trading on March 31 and investor data available, it had asked MOL for information on how it had acquired INA shares, on financial resources it had secured for another entity to purchase INA shares, and on a possible agreement with another entity to purchase INA shares.
MOL received that request on April 4, but has not responded to it to date, HANFA said.
The Croatian market regulator said that the temporary suspension of trading in INA shares was necessary in order to protect investors and ensure regular and proper trading on the capital market.
