Fincantieri and Brodosplit bid for Uljanik and 3 Maj shipyards

Fincantieri and Brodosplit shipyards officially submitted to the Croatian government their interest in taking over distressed competitor Uljanik together with 3 Maj.

Two weeks ago Croatia’s economy minister Darko Horvat said there were four potential investors for Uljanik: Ukraine’s Smart Holding, Italy’s Fincantieri, the Dutch Damen and Royal IHC.

This week Darko Pappo, head of the Split-based Brodosplit, announced that they have presented the Croatian Ministry of Finance a letter of intent with the aim of purchasing the entire Ujanik group. A first attempt made by Fincantieri for taking over only 3 Maj shipyard seems to have been refused by the local government.

Workers and small shareholders have a 47% stake in Ukjanik, the Croatia Osiguranje insurance company has a 9.9%, the Adris group has 2.47% and the rest is controlled by several small shareholders both public and private.

The situation at Ukjanik has worsened since August, after both Siem Shipping and Algoma cancelled shipbuilding contracts at the yard. Two weeks ago also Wellard Ships, a Singapore-based unit of Australian livestock shipping firm Wellard, issued a termination notice of the newbuild contract for a livestock carrier originally commissioned in March 2015.

Nicola Capuzzo

Nicola is a highly qualified journalist focused on transport economics, logistics and shipping with broad experience in both online and printed media. Specialties: shipping, ship finance, banking, commodities and port economics. He regularly interviews Europe's top shipowner executives for Maritime CEO magazine.
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