"Galenika" is only company that will be offered for sale by end of year 2009 - factory's starting price is 200m EUR

Of all the most attractive Serbian companies, only "Galenika" will be offered for sale by the end of the year. Future buyers should know already now that the Zemun-based factory will not be sold at the price lower than 200m EUR, which will be the minimum price on the tender for sale of 100% of the company's capital.

Mlađan Dinkić, the Minister of Economy, told "Blic" that there was no reason for "Galenika" to be sold below the price.

- Since it is a strategically important company, the analyses show that the minimum starting price for 100% of "Galenika" will be 200m EUR. The preparations are close to end, and I do not see why the tender should not be announced by the end of the year - says Dinkić.

People in the Privatization Agency confirmed to us that the strategy for privatization of Zemun-based pharmaceutical factory would be finished soon.

- We hope that the public invitation will be announced by the end of the month. The Government should decide which share of capital to offer for sale - people from the Agency told "Blic".

In addition to the existing factory, the buyer of Serbian pharmaceutical factory will get another one whose construction should be finished at the end of January 2010. Total value of this investment is 46.37m EUR, while 25.9 will be set aside for technological and processing systems.

- The business results of "Galenika" are improving, and we are actively returning to export markets. We have focused on the market of Russia over the last few months, and that is where the first shipment of drugs will be sent at the end of September - says Ognjenović.

That is where the story about large privatizations ends in 2009. People from the Privatization Agency told "Blic" that there were no interested potential buyers. The sale of 51% of NIS at the price of 400m EUR was the largest investment in Serbia in 2009.

Since the beginning of the year, 58 companies have been sold for total of 42.5m EUR, while only five companies have been sold on tenders. The highest price of 24.5m EUR was reached at the beginning of February for Yugoslav River Shipping. The state declared the bid of the only potential buyer interested in the Belgrade Trade Fair as indecent since consortium "Rimini-Verano" offered only 1.8m EUR. Since the consortium was unwilling to increase its offer to 40m EUR, which was the price requested by the authorities, the Belgrade Trade Fair will remain the property of the state and, according to the announcements of Nebojša Ćirić, the State Secretary in the Ministry of Economy, it will not be offered for sale by the end of the mandate of the current Government.

There is a special plan for the Electric Power Company of Serbia.

- Privatization will happen if strategic partners are found for construction of new capacities. The state must keep the majority package of stocks in energy sector, especially in the field of power supply - Petar Škundrić, the Minister of Energy and Mining, pointed out.

IMR and IMT to merge into one factory

- There is no need for Serbia to have two tractor factories. The idea is that we move both IMR and IMT in "Barič" where "Prva iskra" was once situated. All the debts of these companies will be repaid through sale of the parcels in Rakovica and New Belgrade. We will have another factory built and buy new equipment, and modern tractors will be produced in Serbia. All that will take place during the next year, and we are currently working on the feasibility study - Mlađan Dinkić announced.

Loan for RTB "Bor" next year

Unofficially, the money for Mining Smelter Basin (RTB) "Bor" will be provided from the loan, and the strategy is being designed at the moment. The state has not decided yet if it will be a regular loan or a loan for procurement of goods, but it is likely that the funds for investments in the smelter will be included in the budget for year 2010. According to some earlier announcements, about 130m USD will be invested in Bor-based mine, and the state made such decision after three unsuccessful auctions for sale of the company.

(Note: complete text is taken over from newspaper "Blic" of September 8, 2009)