Croatian Government has said to its advisors that they would likely to sell only 15% further stake in INA via stock market instead of selling to strategic partner, Croatian press (Poslovni Dnevnik) reported. Official sales plan on sale of INA’s further stake could be expected in May 2006 and closure of the sale of the sale is set to be September, according to unnamed sources cited by the Croatian press.
MOL is hoping to buy further stake in INA as it currently owns 25%, but it is irrespective to the ongoing IPO. Please note, that MOL is not restricted to buy INA shares on the market.
Due to the high indebtedness of the Croatian state, we expect the government to continue privatization later the year with selling some 25% stake to MOL. As a result, we expect MOL to consolidate INA from 2007.
We keep our Buy recommendation on the stock with a target price of HUF 29,033.