Orco announced the finalization of the acquisition of the Suncani Hvar (a complex of leisure real estate on Hvar island) for EUR 27.3m, represented by 2 million shares from the Croatian Privatization Fund (CPF). In addition, Orco will receive 500k additional shares for free. By August 31, Orco will have a 46.89% stake in Suncani Hvar. Orco also has a right to purchase an additional 1 million shares. The acquisition was partially financed by a bond issue with proceeds of EUR 24.2m represented by 928,513 bonds at EUR 26.03 and interest of 5.5% to be reimbursed on 30 June 2012. Bond holders will have the right to exchange bonds for Suncani Hvar shares between 1 July 2010 and 11 June 2012.
Orco launched a buyout for minorities holding 15.5% of Suncani Hvar at KN 115/share until September 15. Based on the agreement with CPF, Orco will receive 3 shares for free for each share purchased in the buyout. Therefore, Orco may potentially own up to a 67.44% stake in Suncani Hvar.