Struggling Croatian shipbuilder Uljanik Group has picked rival Brodosplit, in partnership with Italian yard giant Fincantieri, as its new white knight.
The company will be the yard group's new strategic partner, Uljanik said in a filing on Thursday.
Brodosplit will now have to draw up an acceptable and feasible plan to revive Uljanik, which has been hit by delays, cancellations and worker strikes amid liquidity problems.
It will take an unspecified stake in the group in return for a recapitalisation.
A deal with the previous strategic partner, Croatian tycoon Danko Koncar's Kermas Energija, was terminated in December.
Uljanik is partly state-owned and operates Uljanik Shipyard and 3 Maj.
Economy minister Darko Horvat told the N1 TV channel that Fincantieri was working with Brodosplit on the offer, without elaborating.
A source close to the matter told Reuters that Fincantieri would act as an adviser to Brodosplit at this stage but would not be an investor.
Huge investment needed
Horvat has previously said restructuring Uljanik could cost about EUR 800m ($907m), with at least half of this coming from the new partner.
Brodosplit has eight cruiseships on order for its own account and TUI, Star Clippers and Oceanwide.
Uljanik and 3 Maj have been reduced to one tanker newbuilding due in June, two cruiseships, a livestock carrier and two ro-ros, plus unfinished hulls for bulkers, car carriers and a dredger cancelled by Algoma, Siem and Jan De Nul.
The group revealed this week that it has signed a deal to supply a car and truck carrier, and Canada's Algoma may be interested in reviving two cancelled bulkers orders.
