RESTRUCTURING  AND SALE CENTER

Invitation to the Public Auction for selling ordinary shares of the company HOTEL MEDENA d.d., Seget Donji, HOTELI ŽIVOGOŠĆE d.d., Živogošće, HTP KORČULA d.d., Korčula and MEDORA HOTELI I LJETOVALIŠTA d.d., Podgora, owned by Republic of Croatia, State Agency for Deposit Insurance and Bank and Croatian Pension Insurance Institut  Resolution

via trading system of the Zagreb Stock Exchange, Inc

TERMS AND PROCEDURES OF AUCTION                                                                                                                                           

Individual package of shares will be sold by the principle "Fill or Kill" (FOK).                                                                                                                                         

Package of shares will be sold in auction with a variable ending according to Zagreb Stock Exchange Rules.                                                                                                                                  

Ownership over the offered shares may be obtained by domestic and foreign legal and natural persons in accordance with the regulations of the Republic of Croatia, through the public Auction represented by a registered member of the Zagreb Stock Exchange, Inc, of their own choice. Buyer/Acquierer who didn't deposit amount equivalent to the starting price per package, at the account of member of the Exchange (broker's) who will represent him at the Public Auction, cannot participate in the Public Auction.The member of the Exchange (broker) is obliged, before the Auction has started, no later than 10 am, April 05, 2017, to deliver the origin of Statement to the Exchange signed by the authorized person, which guarantee that the potential Buyer/Acquirer has paid the selling price per shares package that he will bid for, and that the member of the Exchange (broker) will make a payment for the selling price to the RSC's account within maximum of 2 (two) working days from signing the Contract, on behalf and for the account of the Buyer/Acquirer.                                                                                  

Selected Buyer/Acquirer is obliged, in maximum of 4 (four) working days from the Public Auction date, to sign the Contract of sale and transfer of shares (hereinafter: Contract), which shares are managed by RSC, as a legal representative of all above mentioned owners. The member of the Exchange (broker) is obliged on behalf and for the account of the Buyer/Acquirer, in 2 (two) working days from signing the Contract, to make a payment of achived selling price at the Public Auction at RSC's business account: IBAN HR68 2402 0061 1006 7186 9 at Erste&Steirmaerkische Bank.                                                      

Payment of the selling price achived at the Public Auction must be made only in Croatian Kuna, and as the payment date is considered the date when the purchase price is registered at the RSC's business account. If the member of the Exchange (broker) does not make the payment of the selling price achieved at the Public Auction in timely manner, RSC shall notify Croatian Financial Services Supervisory Agency and the Exchange.                                                                        

The Seller/Transferor is obliged, in maximum 4 (four) working days from the date the selling price is registered at RSC's business account, to issue a document that includes statement in which RSC approves and gives an order to transfer shares from the RSC's dematerialized securities representative account to the Acquierer's dematerialized securities account kept in Central Depository & Clearing Company Inc. (hereinafter: the CDCC).                                                          

When signing the Contract, selected Buyer/Aquierer, domestic and foreign legal and natural persons, are obliged to submit documents establishing their identity (identity card or passport for domestic or foreign natural person, Court registry excerpt for domestic legal person and excerpt from the domicil register in which legal person is registered, for legal foreign persons), including a Personal Identification Number (PIN) according to The Law on Personal Identification Number (Official Gazette 60/08).                                                                                                                                         

Transfer of the shares in the CDCC shall be executed based on the Contract and statement in which Seller/Transferor approves and gives an order to transfer shares from the RSC's dematerialized securities representative account to the Acquierer's dematerialized securities account kept in CDCC.                              

The Buyer shall bear all the expenses regarding verification of assets and liabilities of the Company.                                                                                                 

RSC reserves the right to correct starting price and increment of price change (tick).                                                                                                                            

List of Zagreb Stock Exchange members is available at:                                                                                                                                     

ZAGREB STOCK EXCHANGE , Ivana Lučića 2a, Zagreb, Croatia tel. +38514686800, http://www.zse.hr

For detailed information please refer to:                                                                                                                                        

RSC

Ivana Lučića 6, 10000 Zagreb, Croatia tel. +38516346228, +38516346353.

THIS ADVERTISEMENT CAN BE FOUND AT http://www.cerp.hr