Media 026 acquires nearly half of shares in Borba – Building in core center of Belgrade as “jackpot”

The company Media 026 from Vucak near Smederevo, owned by the businessman Boban Rajic, has increased its capital in Novinsko izdavacko preduzece Borba, from a 7.7% to 44.1% stake, by buying roughly another 36.4% of the shares of Borba for EUR 2.7 million. The sales agreement was signed on October 29, and the news was announced by the Ministry of Economy of Serbia.

As the ministry reminded in its announcement made on October 30, “the public call for taking part in the tender with public bidding for the purpose of the sale of the capital of the subject of the privatization, Novinsko izdavacko preduzece kompanija Borba”, was published on September 3 this year.

– The subject of the sale consisted of a share package of 1,707,590 shares, which is 36.39857% of the total capital of the Privatization Subject, of which: 1,541,300 shares, or 32.85397% of the capital, is owned by the Republic of Serbia, and 166,290 shares, or 3.54460% of the capital, is owned by the Pension and Disability Insurance Fund of the Republic of Serbia. The initial price for the sale of the capital amounted to 50% of the estimated value of the capital of the Privatization Subject as of December 31, 2023, which is offered for sale, that is, EUR 2,761,295.90 – said the ministry.

The deadline for the filing of requests for the buyout of the sales documentation was September 17, and until that deadline, as they say, one request for the buyout of sales documentation was filed. The deadline for the submission of applications for taking part in the procedure was September 24, until which date only one application for taking part in the procedure was filed, by Media 026, Vucak.

– At the proposition of the Commission for the Execution of the Tender with Public Bidding, the Ministry of Economy, on the date of October 11, 2024, reached the Decision whereby it pronounced the bidder Media 026 doo Vucak as the buyer – says the announcement.

The agreement on the sale of the capital of Borba, between the Ministry of Economy and Media 026, was signed on October 29, at a sale price of EUR 2,761,295.90, says the Ministry of Economy.

– Before the signing of the agreement on the sale of said capital with the pronounced buyer, the Ministry of Economy obtained, in line with the Law on Privatization and the Decree on the Conditions, Procedure and Manner of the Sale of the Capital and Property through a Tender with Public Bidding, the opinion from the Ministry of Finance – the Department for Prevention of Money Laundering, on the non-existence of obstacles on the part of the buyer for the signing of the Agreement – says the announcement of the Ministry.

More detailed information about the public call (in Serbian) can be read HERE.

Previous sale for EUR 5.5 million failed

Let us remind that the previously announced sale of the capital of Borba was pronounced unsuccessful at the end of August, as there had been no interested bidders. The then initial price of the now sold shares amounted to EUR 5.5 million.

At the time, as eKapija reported, there were no interested bidders, that is, no application for taking part in the procedure had been submitted before the expiration of the set deadline.

The capital which is traded on the stock exchange consists of the Borba building in the core center of Belgrade, which faces both the Nikola Pasic Square and Kosovska Street on the other side of the block.

Two decades ago, the company Novosti initiated the court procedure with the aim of proving ownership over the majority of the building based on previous investments in it, but it lost the dispute and now the owner of Novosti, by buying ownership rights in the company Borba – the owner of the building – is practically taking over the building.