DD Acquisitions pays part of Croatian Djuro Djakovic’s cap increase in cash

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ZAGREB (Croatia), September 27 (SeeNews) – Croatian Holding Djuro Djakovic [ZSE:DDJH] said on Tuesday that it had received bank confirmation for the payment of the cash part of its capital increase by the Czech investor DD Acquisitions.

The payment was made in accordance with the decision to increase the company’s capital through cash and in-kind contributions, Djuro Djakovic said in a filing on the Zagreb stock exchange.

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He did not disclose the amount of the cash payment in the filing, but the Croatian company announced in July that the Czech investor had agreed to raise Djuro Djakovic’s capital by 232 million kuna ($30 million). /31 million euros) via a cash contribution of 100 million kuna. and an in-kind contribution of 132 million kuna. In exchange, DD Acquisitions will become the owner of 81.83% of the capital of the Croatian company.

The capital increase is part of the extensive restructuring program of Djuro Djakovic, which the European Commission approved in December 2021. The restructuring program included an exchange of debt for equity and a state guarantee on possible receivables future commercial transactions for a total amount of 57.4 million euros.

Earlier, the European Commission said that DD Acquisition, will participate in the capital increase process of Djuro Djakovic with cash and in-kind contributions of approximately 64 million euros. Representatives for Djuro Djakovic were not immediately available for comment.

The company is riddled with debt and the restructuring procedure is necessary to avoid bankruptcy and keep jobs, Vlatko Kesegic, a broker at Fima Vrijednosnice, told SeeNews on Tuesday.

Djuro Djakovic has a diversified industrial portfolio including defence, transport, industry and energy. The main activity of the company is the manufacture of special purpose freight wagons. Djuro Djakovic, which has more than 700 employees, is located in the eastern part of mainland Croatia, in an area with high unemployment and low job creation.

Shares of Djuro Djakovic jumped 4.71% to 89 kuna on Tuesday afternoon on the Zagreb stock exchange.

(1 euro = 7,530 Croatian kuna)

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