| From: | "Jim Yarker" <[EMAIL PROTECTED]> |
| To: | [EMAIL PROTECTED] |
| Subject: | Belgrade Bourse kicks off 2002 looting spree |
| Date: | Fri, 5 Apr 2002 02:25:35 -0500 |
(Ministry of Info.)
First auction privatisations at the Belgrade stock exchange
April 04, 2002
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Belgrade, April 3, 2002 - Serbia sold off three small companies at auction on Wednesday in the first of some 250 privatisations by this method foreseen for this year.
The glass maker Ornament from the Vojvodina's town of Subotica, food-processing Elgrakop plant from Ljig and car maintenance shop Autoservis from Priboj fetched around $320,000. Ornament's 70 percent stake was sold for 5,769,218 dinars or the minimum estimated value to Dragan Zoraic on behalf of the private company Mio II d.o.o. export-import.
Two bidders showed up for the auction of Autoservis and the company was sold to Kosta Ranitovic, for 2,352,000 dinars. Elgrakop plant was sold for 14,624,593 dinars to the plant's workers represented by Zarko Gajic.
Six other firms were left unsold because buyers felt they had been overvalued, Serbian Minister of Economy and Privatisation Aleksandar Vlahovic said.
According to the privatisation Law that was enacted in July 2001, the government's strategy is to sell big, lucrative firms to strategic partners via international tenders and small and medium ones to local businessmen through auctions.
Vlahovic said local private investors should not be afraid to take legitimate stakes in such companies.
The companies offered at auction on Wednesday were the first group of some 250 firms planned to be auctioned in 2002, Serbian Privatisation Agency head Vladimir Cupic said after the auctions. He also announced that the Agency would put shares on sale in May from its portfolio of minority government stakes in dozens of firms that were partially privatised during the 1990s.
The auction procedure stipulates that the companies are offered for bids at an initial price representing the minimum valuation of its capital, with ownership going to the highest final bid. The procedure calls for a second and third round if no bids are offered, with the lowest acceptable price being no less than the paid deposit for participation in bidding.
The proceeds from the privatisations go to the Serbian budget, with ten percent allocated to the Pension and Disability Fund, and a further 5 percent each to developing infrastructure in the company's region, development of regional local self-government, and for compensation to individuals whose property was nationalised by the state.
Funds will also be employed for stimulating economic development, environmental protection, paying off state debts and for covering the costs of the auction privatisation process.
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