The Finance Ministry issued public tenders for advisory services for the privatisation of the Croatian Postal Bank (HPB) and the Croatian Insurance Company (CO). The advisory services for HPB and CO are valued at €1.3 million and €4 million, respectively.
After an earlier unsuccessful tender this summer, where only one valid offer was received and another was contested by the Swedish bidder, the tender was cancelled and repeated. The CO tender is the beginning of the privatisation process for CO, which is the largest insurance company in the country. The state owns 80% of CO; the tender documentation has an inconsistency with the Government’s goal being to sell shares up to 50% of CO, while also stating that they intend to retain its strategic goal of 25% + 1 share. This inconsistency will need to be clarified in the final privatisation negotiations. Regarding the HPB, the state intends to sell 51.45%. The advisory services include an in-depth financial assessment, market research, market value assessment, development of privatisation model(s), and identification of potential strategic investors.
The deadline for the submission of bids for the HPB and CO is 29 October and 30 October, respectively, with the selection expected by the end of November. In the original tender for the HPB this summer, the documentation included a success guarantee bond for chosen bidder of 30% of the value of the contract, which guaranteed the contracting authority the successful completion of the contract; this bond has been reduced to 15% for both the HPB and the CO.