There are currently two "serious" strategic partners interested in acquiring a stake at the indebted Pula-based Uljanik shipbuilding group, Economy Minister Darko Horvat told reporters after a government session on Thursday.

Horvat added that his ministry is expecting a formal offer from Ukraine’s Smart Holding Group next week, after Italy’s Fincantieri shipbuilding company had already submitted its letter of intent.

The selection of a preferred strategic partner should be made before the expiration of the legally mandated 120-day period following the freezing of the company’s accounts, which kick-starts automatic bankruptcy procedures. There are only about 20 days remaining before the deadline expires, meaning a partner should be found within the next three weeks.

The indebted Uljanik shipbuilding group, which owns the Pula-based Uljanik and the Rijeka-based 3. Maj docks, is looking for an investor which would acquire a stake in the company and co-finance a comprehensive restructuring plan.

According to recent media reports, the estimated cost of the management’s current plan to save the dock is 5.27 billion kuna (€710 million) and proposes that Uljanik and it’s partner company co-finance the plan with 2.63 billion kuna (€354 million), with the rest paid for by the government.

The plan includes re-purposing some of the seaside plots of land in Pula used by the dock in order to house lodgings for tourists and a marina.

Prime Minister Andrej Plenkovic had met on Monday with the owner of Ukraine’s Smart Holding Group, Vadym Novynskyi, for talks on company’s potential investment in Uljanik.

Meanwhile, the shipyard’s workers decided to suspend their strike on Tuesday, after a month-long strike over unpaid wages for September. Also on Tuesday, the CEO of the Split-based Brodosplit shipyard, Tomislav Debeljak, met for talks with members of the striking committee at the 3. Maj dock and said that Brodosplit would decide after due diligence if it was interested in investing in the dock.

Brodosplit and its parent company DIV Group, owned by Debeljak, have expressed interest in possibly acquiring a stake at the 3. Maj dock together with the Trieste-based Ficantieri shipbuilding company.

(€1 = 7.42 kuna)

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