New Law on Privatization that was passed by Serbian Parliament on August 2nd 2014, and entered into force on August 13th 2014, was passed since it has been proven impossible to conclude the privatization process in Serbia without making changes in the concept by introducing new privatization models
In line with the above, the Law on Privatization ensures more flexible methods and models of privatization, based on real market conditions, thus making the procedure more efficient. The Law on Privatization envisages the following models: sale of capital, sale of assets, transfer of capital free of charge and strategic partnership; method of privatization can be public collection of offers with subsequent public bidding, and public collection of bids. In addition to models and methods, the Law also provides measures for preparation and disburdening the companies in privatization, such as: conditional debt write-off and debt to equity swap (conversion).
Pursuant to the Law, mandatory deadline for privatization of socially owned capital is December 31st 2015.
In order to survey the interest of potential investors, Privatization Agency announces the public invitation for collecting letters of interest, inviting investors to express their interest in privatization of specific companies. In line with expressed interest of potential investors on one side, and evaluation of company’s business viability on the other, the Agency shall submit to the Ministry of Economy, within 45 days after the deadline for submitting letters of interest, models and methods of privatization for each individual company in privatization. Based on Agency’s proposal, a decision shall be passed on the model and method of privatization, the initial price and measures for preparation and disburdening the company in privatization.
Privatization Agency portfolio includes 502 parent companies and their subsidiaries from the following industries: administrative and support service activities (13), construction (51), public administration and defense; compulsory social security (1), human health services (16), IT and other information services (73), education (1), other services (4), agriculture, forestry and fishing (35), real estate activities (1), manufacturing (113), mining and quarrying (6), transportation and storage (21), electricity, gas, steam and air conditioning supply (7), water supply, sewerage, waste management and remediation (5), professional, scientific and technical activities (67), wholesale and retail trade; repair of motor vehicles and motorcycles (83), arts, entertainment and recreation (3), accommodation and food service activities (21), financial and insurance activities (15), for which the Public Invitation is announced.
In this respect, based on Article 18 of the Law on Privatization (“Official Gazette of the RoS”, no. 83/14), Privatization Agency (hereinafter: the Agency) as of August 15th 2014 announces:
for collecting letters of interest for companies in
Privatization Agency portfolio
1. The Agency is hereby inviting all interested investors to submit their letters of interest for participation in privatization of companies in the Agency’s portfolio (hereinafter: Interested Investors), expressing their interest in privatization of a specific company in privatization in the Republic of Serbia (hereinafter: Letter of Interest).
2. The Letter of Interest must be marked with: “Letter of Interest - company’s ID number (Notice: ID number must be inserted)”and must contain the following elements:
- basic data about prospective investor
- basic data on the company in privatization (name, address, ID number)
- expression of interest for participation in privatization process with proposed model in line with the Law on Privatization (if an investor is interested in model of asset sale, the letter must specify the asset)
- proposed indicative price, investment program, provisional business plan and number of employees that the investor is ready to employ permanently, from the company in privatization or otherwise.
Interested Investors can download the Form of the Letter of Interest here
. Suggested form is not obligatory.
3. Letters of Interest shall be submitted by mail or directly to the Agency at 23 Terazije Street, or via e-mail to email@example.com
, not later than September 15h
4. The Agency reserves the right to amend any and all elements of this Public Invitation, and shall have no liability in case of any costs or damages that may occur in this respect to any Interested Investor or third parties.
Presented data corresponds with that submitted to Business Registers Agency with correction in number of employees.
5. For any inquiries regarding this Public Invitation, please contact the Agency at the following address:
BELGRADE, 23 TERAZIJE STREET
Phone: +381 11 3020 800