Croatia's Centre for Restructuring and Sale (CERP) has concluded an agreement to sell 97.13 per cent of Pula shipbuilder Uljanik Brodogradnja 1856 to Istanbul-based Kuzey Star Shipyard.
The buyer paid €12,053,500 (US$13,530,777) for four business interests in the company, above the tender's starting price of €11,085,250 (US$12,443,858).
Under the agreement, Kuzey Star has undertaken to retain the company's shipbuilding activity, vessel overhaul and all associated activities throughout the maritime domain covered by the yard's concession. Croatia's Ministry of Economy said the obligations are consistent with the existing concession agreement.
The investor will receive the shipbuilding facilities already in place, along with rights to use the maritime domain in Pula Bay. Ownership of the land and sea area will not be transferred.
"Uljanik's further development will depend on the new investor's business decisions, investments and contracted work," said Minister of Economy Ante Šušnjar.
CERP said completion of the sale ended the restructuring and stabilisation process previously undertaken for the company. The ministry said government guarantees and loans have supported the company since 2020.
In September, the yard had approximately 230 employees, with 250 to 300 people engaged in production including subcontractors, director Samir Hadžić told Jutarnji list.
Work at the time included outfitting and testing of a new livestock carrier, a project through which the yard and Kuzey Star had already established a working relationship.
CERP's governing council accepted Kuzey Star's binding offer on September 4. A competing bid from Luxembourg-based Mira Finance Holding was declared invalid after CERP found the required bid guarantee had not been recorded.
As a non-EU investor, Kuzey Star was subject to screening under Croatia's Foreign Investment Screening Act.
Uljanik Brodogradnja 1856 was established as a separate company to restart shipbuilding in Pula after bankruptcy proceedings opened against the earlier Uljanik entities in May 2019.
The concession was transferred to it in 2020.
