SARAJEVO (Bosnia and Herzegovina), September 25 (SeeNews) - The government of Bosnia’s Muslim-Croat Federation has signed an agreement for the establishment of a joint venture between its troubled furniture maker Krivaja and local privately held company Ferimpex, Dnevni Avaz daily reported on Thursday.
Wood-processing and furniture production are one of Bosnia’s main export industries. Krivaja, based in the town of Zavidovici, in central Bosnia, used to be among Bosnia’s top 10 exporters but its current operations are hampered by lack of fresh investments.
Krivaja will hold a 30% stake in the new company, to be called Krivaja 1884, with a contribution of 4.28 million marka ($3.2 million/2.19 million euro), the daily reported. Freimpex will secure 10 million marka in cash for the joint venture company.
Krivaja 1884 will aim to partner with global furniture giant Ikea, the daily quoted Ferimpex director Ismet Mujanovic as saying.
Bosnia Federation’s Privatisation Agency invited bids from interested investors to form a joint venture with Krivaja in March. It then said the part of Krivaja’s capital that the government would contribute to the joint venture would depend on the bids of the potential partners.
Ferimpex was the sole company to place a valid bid for entering a joint venture with Krivaja, in May.
(1 euro = 1.95583 Bosnian marka)
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