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Croatian Government Seeks Ways to Aid Money-Losing Shipyards

March 22 (Bloomberg) -- Croatia will discuss ways to save state-owned shipyards in Rijeka and Trogir after it rejected offers by Zagreb-based Jadranska Ulaganja d.d. to buy the state-owned plants.

The government also accepted an offer by Samobor, Croatia-based DIV d.o.o. to buy the shipyard in Split, on Croatia’s Adriatic coast, for the price of 1 kuna. DIV will need to invest 2 billion kuna ($349 million) in the next five years, Deputy Prime Minister Radimir Cacic told the Cabinet today.

The sale of money-losing shipyards was a main requirement for Croatia to conclude the negotiations with the European Union in June. The Adriatic Sea nation is set to join the bloc in July 2013.

The government is seeking “solutions” within 90 days from the Economy Ministry for the shipyards in Rijeka and Trogir, it said today. It will also start bankruptcy proceedings on the Kraljevica shipyard.

The only profitable shipyard, Uljanik d.d. in Pula, in which the state holds 84 percent, will be sold off by distributing shares to its workers and offering additional shares on the market, Cacic said.

To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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