Croatia has chosen Turkey's Kuzey Star Shipping to take control of Uljanik Brodogradnja 1856. This decision moves towards the privatization of this historic shipping operation in Pula after years of government-supported restructuring.
Proposal Details and Price
The Croatian Restructuring and Sale Center (CERP) has accepted Kuzey Star Shipping's firm offer of €12.05 million (equivalent to $13.8 million) for four shares, which represents approximately 97.13 percent of this shipping company. This offer is higher than the starting price of €11.09 million that was set at the beginning of the sales process in June.
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Final Steps and Government Support
This deal has not yet been finalized. Since Kuzey Star Shipping is based outside the European Union, the purchase must pass through Croatia's foreign investment review process. CERP has stated that the sales and transfer agreement with the Turkish builder will be finalized, and the shares will be transferred after approval from the Ministry of Finance.
Kuzey Star Shipping is also committed to maintaining shipbuilding and repair activities and the construction of floating structures in all maritime consortia that Pula Shipping is part of.
A competing offer from Luxembourg-based Mira Finance Holding was rejected, as CERP found that the required guarantee for the offer did not reach their account.
This deal will mark the end of another long phase of restructuring for one of Croatia's most renowned shipbuilders. The initial financial crisis of Uljanik occurred in 2018 when owners including Algoma Central and Siam Shipping canceled new contracts due to growing doubts about the group's ability to fulfill its orders.
The current operations of Uljanik Brodogradnja 1856 stem from subsequent restructuring processes. CERP has stated that the Croatian government has supported this business since 2020 with guarantees and loans to stabilize operations and maintain shipbuilding in Pula while seeking a strategic investor.
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