EPS property value being estimated for stock exchange purposes – Sale not planned at the moment

(Branko Kovacevic) Energoprojekt Entel and the Economics Institute are estimating the value of the property of EPS, the public enterprise has confirmed to Tanjug, but those familiar with the situation claim that this doesn't mean that the sale of the enterprise is being prepared.

The president of the Supervisory Board of EPS, Dr Branko Kovacevic, says that the sale is out of the question at the moment, and that the aim of the estimate is for EPS to prepare to turn into a joint-stock company.

– EPS needs to become a JSC, and for this to happen, it needs to make an inventory of its property, following which the value of the property needs to be estimated. This is the first step towards the stock exchange and towards the company's growth, and at the moment, the sale is out of the question – Kovacevic says.

At the moment, the professor says, EPS is not ready for the sale, and whether the founder decides to go for the capital increase and the introduction of a minority partner soon, or not at all, is up to the founder, the Government of Serbia.

What's necessary, Kovacevic says, is for EPS to operate in line with economic and market principles, and, to that end, turning into a JSC is a favorable option.

Kovacevic believes that profitable state-owned enterprises which contribute to the budget shouldn't be sold, nor should the entirety of their profits be takes, as they need to reinvest.

– They need to reinvest in technology, to hire young people – he says and adds that it is in the interest of EPS to have a strong collective and management.

In the response of EPS sent to Tanjug, it is stated that the agreement on the estimation of the value of the property of EPS was signed in July 2016 with Energoprojekt Entel and the Economics Institute and that the value of the public procurement is RSD 34 million and the deadline period for the completion of the estimate eight months.

EPS emphasizes that the decision on the legal form of the enterprise will be made by the Government of Serbia.

The Ministry of Economy said in late July that the state didn't intend to sell EPS at the moment.

Elektroprivreda Srbije ad Beograd

Energoprojekt Entel a.d. Beograd

Ekonomski Institut a.d. Beograd

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

Elektroprivreda Srbije

sale of EPS

privatization of EPS

Energoprojekt Entel

Economics Institute

EPS

Branko Kovacevic

Government of Serbia

Ministry of Economy