The shareholders of Croatian mineral fertilizer producer Petrokemija d.d. approved a proposal to increase its capital by up to EUR 143.8 million ($156.6 million) by a new share issue, oil pipeline operator Jadranski naftovod d.d. (ZGSE:JNAF), which is one of the shareholders, said. Petrokemija will raise its capital through the issuance of between 70 million and 140 million new shares, each with a nominal value of EUR 1.0, Janaf said in a filing to the Zagrebbourse. The shares will be priced at EUR 1.0272 each.

The company?s capital totals EUR 55 million. Following the capital increase, it will grow to between EUR 125 million and EUR 195 million. Janaf called an extraordinary shareholders meeting on April 15 to vote on its participation in the future capital increase of Petrokemija.

It proposes that the company participates in the capital increase with EUR 2.8 million, buying 2,762,700 shares. Currently, Janaf owns 5,000,000 shares in Petrokemija. The proposal for the capital increase was made in late January by Turkish holding company Yildirim, the majority shareholder of Petrokemija, which has suggested raising Petrokemija's capital to help the company avoid bankruptcy.

Initially, the Petrokemija?s shareholders were supposed to vote on it on a meeting called on February 7, but according to Croatian media reports the meeting back than did not take place. In a separate press release, the Croatian economy ministry said that the capital hike will enable Petrokemija to achieve stable and successful operation. The funding from the capital increase will be used to upgrade its capacities, for working capital, and improvement of efficiency of its logistics and other processes.

The Croatian government, together with state-owned companies including Janaf and gas transmission system operator Plinacro, holds 45.17% of the share capital of Petrokemija.