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Serbia agrees on terms of Petrohemija's sale to NIS - Vucic

Author Radomir Ralev
Serbia agrees on terms of Petrohemija's sale to NIS - Vucic Source: Serbian President's Office

BELGRADE (Serbia), November 25 (SeeNews) - Serbia has agreed on all terms on the sale of the petrochemicals producer HIP Petrohemija to local oil and gas company NIS [BEL:NIIS], President Aleksandar Vucic said.

"Everything has been agreed and I can say that this is an important piece of news for the workers of the company," Vucic said in a video file posted on the website of Tanjug news agency on Wednesday.

Dragan Stevanovic, state secretary at the economy ministry, said last month that the government officially started talks for the sale of Petrohemija to NIS, in which Russia's Gazprom owns a 56.15% stake.

"A total of 10% of the costs of Petrohemija depends on the price of gas, and the only people with whom we can reach such an agreement are the Russians," Vucic said.

NIS placed the sole bid in the government tender for selecting a strategic partner in HIP Petrohemija in October. The strategic partner intends to inject 150 million euro ($168 million) in the capital of HIP Petrohemija, acquiring a stake of up to 90% in the company's capital.

The Serbian government owns a 75.27% stake in the capital of HIP Petrohemija, NIS owns 20.86%, Russia's Lukoil controls 3.09%, while the remainder is in the hands of smaller shareholders.

HIP Petrohemija owns petrochemical production plants in Pancevo, Elemir and Crepaja. It is specialised in producing high-density polyethylene (HDPE), low-density polyethylene (LDPE) and other petrochemical products with an annual output capacity of 700,000 tonnes.

($ = 0.859 euro)

Naftna Industrija Srbije AD is among the biggest companies in SEE, for more reference take a look at Top 100 companies
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