Transformation and privatization

Activities concerning Nikola Tesla transformation and privatization started in 1992 and ended in 1995. After defining the interest in purchasing a stake in the company, expressed by the then employed and previously employed workers, the Worker’s Council defined the ways of transformation and indicated the possible owners of the future joint stock company (Decision on transformation of a socially owned enterprise Nikola Tesla into a joint stock company and the adoption of the Transformation Program). That was the last task for Nikola Tesla Worker’s Council. After that, in line with the Law, the Worker’s Council was abolished, after 40 years of existence, and the Croatian Agency for Reconstruction and Development appointed the Management Board. In November 1993, by the Decision on Company Transformation made by the Croatian Fund for Privatization, Nikola Tesla enterprise value was estimated at DEM 133 165 000. The decision was to sell only half stake in the Company’s ownership to employees. The interest was so big, that the number of shares had to be decreased by 14.9 percent to each of Tesla’s employee - shareholder. After share registration followed the signing of the, Agreement to Acquire Shares. A year later, in 1994, the Croatian Fund for Privatization publicly announced Solicitation for the purchase of 49.07 percent of the Company total value, and Ericsson expressed the interest to buy it off.

The Croatian Fund for Privatization and Ericsson signed an Agreement on selling 49.07 percent of Nikola Tesla shares in March 1995. Many distinguished Croatian and Swedish representatives from economic and political life were present at the Agreement Signing Ceremony at the Esplanade Hotel. In this way, Ericsson became the largest single shareholder in Nikola Tesla. The Constituent Assembly of Ericsson Nikola Tesla Joint Stock Company was held on May 13, 1995 in the Company’s restaurant due to war risks and Zagreb bombing.