Solicitation of Expressions of Interest for Financial Advisor to privatize a Pool of three Brewing Companies: "Beogradska industrija Piva”, Beograd, "Vrsacka pivara”, Vrsac and "Jagodinska pivara”, Jagodina. (Pool 16)
"Beogradska industrija Piva”, Beograd, has been established in 1839. It is located in Belgrade, the capital of the Republic of Serbia, with population of around 1.700.000. AD "Beogradska industrija piva" (short: BIP) ownes production capacities for producing beer, malt, mineral water, fruit juices and vinegar. Production units are located in four Serbian cities: Belgrade, Cacak, Sremska Mitrovica and Leskovac. The position of producton units enables coverage of the whole territory of Serbia. Company headquarters and the majority of production plants are located in Belgrade, which is also the best market. As of November 2003, "Beogradska industrija piva” employed 1871 workers.In 2003, BIP has purchased the new modernized line for bottling of beer from German company Krones. At the begining of September 2003 the company created and launched the new brand of beer, "Beogradsko pivo" ("Belgrade beer"), replacing the previous asortment of beers. This new brand of beer has made an immediate impact and contributed to the increase of BIP's share in the Belgrade market .In fiscal 2002, the company had sales revenues of around 28 million EUR and a net loss of around 7 million EUR. Book value of assets for the Company was 101 million EUR, and the book value of equity was close to 68 million EUR. The Company’s equity structure is as follows: 51.31% state owned capital, 47.71% privately owned capital and 0.98% other capital. The Privatization Agency is offering for sale 100% of the Company’s state owned capital.
"Vrsacka pivara” ,Vrsac, has been established in 1742. It is located in the northern part of the Republic of Serbia, some 80 kilometers north–west of the capital of Belgrade. It is situated in the region of Vojvodina, traditionally well known for its agriculture. As of November of 2003, the Company employed 292 workers. "Vrsacka pivara” produces light and dark beer, as well as wide range of non alcoholic beverages. Beer is bottled in glass packages and tin cans, and the special offer is a beer from the barrel, which is produced for the purposes of hospitality industry and large street celebrations. "Vrsacka pivara” is one of the oldest breweries in the Balkans, enjoying a long tradition of 260 years in this business. Only in the last 25 years, the brewery won over 35 gold, silver and bronze medals for quality, namely for the beer which is made exclusively from natural ingredients. In fiscal 2002, the company had sales revenues of around 5.1 million EUR and a net profit of zero. Book value of assets for the Company was around 14.4 million EUR. The Company’s equity structure is composed of 91.10% state owned capital and 8.90% privately owned capital. The Privatization Agency is offering for sale 100% of the Company’s state owned capital.
"Jagodinska pivara”, Jagodina, has been established in 1852. It is located in the central part of the Republic of Serbia, some 140 kilometers south of the capital of Belgrade. As of November of 2003, the Company employed 535 workers. Main operating activity of "Jagodinska pivara” is production and marketing of beer and non-alcoholic beverages. The company is also producing malt, yeast and water. In fiscal 2002, the company had sales revenues of around 7.6 million EUR and a net loss of around 6.8 million EUR. Book value of assets for the Company was around 30 million EUR, and the book value of equity was around 12 million EUR. The Company’s equity structure is composed of 51.18% state owned capital and 48.82% privately owned capital. The PA is offering for sale 100% of the Company’s state owned capital.
More detailed information on the companies can be located on the web-site of the Privatization Agency, Republic of Serbia (www.priv.yu).
The objective of the Serbian Government in this privatization is to attract a reputable, international or domestic strategic investor with industry expertise and financial strength necessary to execute investment and marketing plan which would increase its production volume, introduce new products and strengthen market position. To achieve this goal he Financial Advisor will: (i) undertake the necessary vendors due diligence and prepare a Diagnostic Report suggesting necessary pre-privatization measures and the envisaged privatization strategy; (ii) conduct an investors search and actively market the investment opportunity to a wide group of potential purchasers; (iii) prepare information memorandums, draft share purchase agreements, and other tender documents (iv) prepare an environmental audit (v) conduct a valuation and present a market assessment report comprising the feedback from potential purchasers (vi) implement the privatization of the companies through a competitive international tenders and lead the sales process until closing of the privatization transaction. All of these activities will be funded by a combination of a Retainer Fee to be financed under the Grant, and a Success Fee to be funded out of the proceeds of the actual sales.
The Privatization Agency of the Republic of Serbia now invites expressions of interest from eligible firms or consortia of firms for the preparation of a short list of companies to who Requests for Proposals will be sent. Eligible firms are Investment Banks or Financial Advisors and/or consortia lead by such firms. The firms or consortia and their personnel must have strong experience in the preparation and privatization of public enterprises, a track record of closed privatization transactions in the particular industry as well as relevant work experience in Eastern European Countries. Financial Advisors may wish to form a consortium of specialists in order to evidence the required experience. Expressions of interest from eligible firms should specify the following minimum information in order to be considered for short-listing: (i) profile of the firm/consortium; (ii) names and curricula vitae of the firm’s key personnel proposed for this project; (iii) evidence of a track record in industry and type of assignment; (iv) work experience as advisors to governments in successful privatizations; and (v) work experience in Eastern European countries.
A financial advisor will be selected in accordance with procedure as set out in the World Bank’s Guidelines: Selection and Employment of Consultants by World Bank Borrowers January 1997 (revised September 1997, January 1999 and May 2002).
Interested and eligible firms who wish to participate should submit their expressions of interest by February 26th, 2004.
Ms. Zorica Petrovic,
Head of Procurement Department
Privatization Agency of the Republic of Serbia
Terazije 23,11 000 Belgrade
Tel.: (381 11) 3029 968
Fax: (381 11) 3020 828
E – Mail: firstname.lastname@example.org