Home / Negotiations / 2008-2009


  • Spring 2008: The Croatian Government and MOL start negotiations for enhanced co-operation through a share exchange between INA and MOL shares. The negotiations resulted in draft contracts produced in summer 2008.
  • June-July 2008: After the public announcement of negotiations between MOL and the Croatian Government by the then Prime Ministers of Croatia and Hungary, the price of INA’s shares rapidly increased - hitting all the previous records as a result of speculation around MOL’s potential public offer for INA’s outstanding shares.
  • July 14, 2008: To end speculation around a public bid for INA’s shares, MOL submits a notification to Croatian Financial Supervisory Agency (HANFA) stating its intentions to submit a public offer for INA’s outstanding shares.
  • September 2008: During the public offer period, the global economic crisis spreads throughout Europe causing sharp drops in share prices across sectors, including MOL, but INA’s share price was maintained by MOL’s public bid. The liquidity crisis intensifies around the world, including Croatia and Hungary limiting the scope to conduct major transactions.
  • October 2008: MOL closed the process of the public offer which results in the purchasing of more than 22% of INA shares for EUR 870 million, in the largest public offer in Croatia to date. INA’s share price was kept at the offer price level until the end of offering period. By the end of the public offer share prices across Europe had fallen dramatically, including MOL’s which nullified the possibility of a share swap, meanwhile INA’s share price dropped almost 70% within a short period of time.
  • November 2008: Negotiations are held around two main topics: 1) the Amendment to the Shareholders Agreement, 2) gas issues (including the terms and conditions for the unbundling and sale of INA’s gas storage and supply & trading activity).
  • November 2008: Urgent discussions take place on INA’s Management Board and Supervisory Board regarding the company’s financial situation. Croatian Government representative hold meetings with MOL to discuss INA’s situation and next steps.
  • December 2008: MOL and the Croatian Government discuss how to save INA. By the end of 2008 it became clear that immediate measures to increase INA’s liquidity were needed to keep the company solvent and from breaching its existing contracts and obligations. To avoid such a default with drastic consequences, it was agreed that the following actions were needed: 1) increasing the operating revenue or decreasing the operating loss (the sale of INA’s gas storage and trading was designed to support this) immediately to comply with obligations from credit facilities; and 2) inject fresh cash from MOL into the company (as included in the amendment to the Shareholders Agreement which granted management control to MOL as a prerequisite for providing credit facilities to INA).
  • January 2009: Following intensive negotiations throughout January, the parties reached an agreement and signed three contracts on January 30, 2009: the First Amendment to the Shareholders Agreement, the Gas Master Agreement and the Sale and Purchase Agreement by INA and Plinacro d.o.o. (the 100% state-owned Croatian transmission system operator nominated by the Government as the buyer for INA’s gas storage activity).
  • February-June 2009: Negotiations on the detailed terms of unbundling and sale of INA’s gas supply & trading continues.
  • June 10, 2009: The First Amendment of the Shareholders Agreement is closed through election of new, MOL-nominated INA Supervisory and Management Boards.
  • July 1, 2009: The first breach of the Gas Master Agreement (GMA) by the Croatian Government due to its failure to take over of INA’s gas trading subsidiary. Negotiations continue to remedy the breach.
  • December 16, 2009: The Croatian Government and MOL sign the First Amendment to the Gas Master Agreement (FAGMA) as an immediate remedy for breaching the GMA.