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Bosnia fails to attract bidders for stake in insurer Sarajevo Osiguranje

Author Maja Garaca
Bosnia fails to attract bidders for stake in insurer Sarajevo Osiguranje wrangler/

SARAJEVO (Bosnia and Herzegovina), June 24 (SeeNews) – Bosnia's Muslim-Croat Federation did not receive a single bid in an auction for a state stake in local insurer Sarajevo Osiguranje held on the Sarajevo Stock Exchange on June 23, a bourse spokesperson told SeeNews on Friday.

"The auction of Sarajevo Osiguranje shares did not take place on Thursday because there wasn't a single interested buyer," the spokesperson said in response to a SeeNews inquiry.

The price of the 2,108,469 shares on offer was 12.99 marka ($7.5/6.6 euro) apiece, the bourse said in May.

Sarajevo Osiguranje's capital is divided into 4,634,633 shares, according to bourse data.

The government holds a 45.5% stake in Sarajevo Osiguranje, as the bulk of the remainder is in the hands of local investments funds and the Sarajevo-based Raiffeisen bank.

On May 17, the government adopted a decision to divest its share in the insurer via the Sarajevo Stock Exchange.

The move is in line with the entity's privatisation plan for 2016 which foresees the sale of stakes in drug maker Bosnalijek, engineering co Energoinvest, fuel retailer Energopetrol, aluminium smelter Aluminij, tobacco factory Fabrika Duhana Sarajevo and Sarajevo Osiguranje.

The Federation is one of the two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.

(1 euro=1.95583 Bosnian marka)