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Serbia to call pre-qualification bid for drug firm
Wed, 25th Nov 2009 13:08
BELGRADE, Nov 25 (Reuters) - Serbia's Privatisation Agency said on Wednesday it would invite potential bidders by the end of the month to submit letters of intent to buy a controlling stake in drugmaker Galenika.
Belgrade-based Galenika produces 90 percent of medicaments in the market but, measured by earnings, its market share is only around 13 percent of the Serbian market.
'Bidders will also be required to submit development plans for Galenika,' a spokesman for the Privatisation Agency said.
Earlier this year, the agency said the minimum asking price for a 70 percent stake the government plans to put on sale would be 200 million euros ($301 million), in line with recommendations made by advisors Rothschild and Citadel.
Privatisation Agency head Vladislav Cvetkovic told Blic daily there would be no cheap sale of Galenika, which is not listed in the market.
'We are waiting for serious investors and if we see respectable companies are ready
to bid, the tender might be called in the first quarter of 2010,' he was quoted as saying.
Galenika's 2008 net profit fell to 601 million dinars ($9.5 million) from 950 million in 2007, according to official data.
The sale of Galenika was part of a 2008 government plan to sell major state-run enterprises, including power utility Elektroprivreda Srbije (EPS), JAT Airways flag carrier and state-run Telekom Srbije landline monopoly and distribute free shares to about five million people.
The government put the plan on hold after global financial turmoil scared potential investors away from many emerging markets in Europe.
(Reporting by Aleksandar Vasovic; Editing by Gordana Filipovic and Dan Lalor)
($1 = 0.6643 euro) Keywords: SERBIA GALENIKA/
(aleksandar.vasovic@thomsonreuters.com; +381113044902)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Belgrade-based Galenika produces 90 percent of medicaments in the market but, measured by earnings, its market share is only around 13 percent of the Serbian market.
'Bidders will also be required to submit development plans for Galenika,' a spokesman for the Privatisation Agency said.
Earlier this year, the agency said the minimum asking price for a 70 percent stake the government plans to put on sale would be 200 million euros ($301 million), in line with recommendations made by advisors Rothschild and Citadel.
Privatisation Agency head Vladislav Cvetkovic told Blic daily there would be no cheap sale of Galenika, which is not listed in the market.
'We are waiting for serious investors and if we see respectable companies are ready
Galenika's 2008 net profit fell to 601 million dinars ($9.5 million) from 950 million in 2007, according to official data.
The sale of Galenika was part of a 2008 government plan to sell major state-run enterprises, including power utility Elektroprivreda Srbije (EPS), JAT Airways flag carrier and state-run Telekom Srbije landline monopoly and distribute free shares to about five million people.
The government put the plan on hold after global financial turmoil scared potential investors away from many emerging markets in Europe.
(Reporting by Aleksandar Vasovic; Editing by Gordana Filipovic and Dan Lalor)
($1 = 0.6643 euro) Keywords: SERBIA GALENIKA/
(aleksandar.vasovic@thomsonreuters.com; +381113044902)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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