The government of Croatia is expected to increase the capital of Croatia Airlines (OU, Zagreb Franjo Tuđman) by HRK296 million kunas (USD41 million) to HRK923,879,530 (USD127.4 million) by subscribing to 29.6 million new shares, it outlined in a Zagreb Stock Exchange filing on November 22.
The flag carrier’s shareholders - it is 98.76% state-owned - will vote on the matter at an extraordinary general meeting scheduled for 1200L (1100Z) on December 22.
The new shares will be issued at a price of HRK10 (USD1.38) each and the government will pay for them in cash. The filing did not disclose the purpose of the capital increase for the loss-making airline. Last month, Croatia Airlines said it had chosen the A220 as its new aircraft platform and placed an order for six units, aiming to be an all-A220 operator by 2026.
In a separate statement on the same day, Croatia Airlines said that in accordance with Zagreb Stock Exchange rules, the bourse had “placed the issuer Croatia Airlines into the observation segment due to the decision proposed to the General Assembly regarding the capital increase.”
