BELGRADE (Serbia), August 10 (SeeNews) – The sole bidder in a privatisation tender for local fair company Beogradski Sajam has refused to raise its offer, a condition set by Serbia in order for the sale talks to continue, the country's Privatisation Agency said on Monday.
“The sole bidder in the tender, a consortium comprising Italian trade fair organiser Rimini Fiera and local firm Verano Motors, notified the agency in writing today that it does not accept the conditions stipulated by the tender commission in charge of handling the privatisation of Beogradski Sajam, that is, it isn’t prepared to raise the offer to no less than 40 million euro [$56.7 million],” the agency said in a statement.
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The tie-in had offered an acquisition price of 1.8 million euro.
“Pursuant of the relevant legislation, the tender commission will declare the tender for the sale of 70% of Beogradski Sajam unsuccessful,” the statement also said.
The consortium offered to pay the deal price in six annual installments and has pledged to invest a further 35 million euro in the Belgrade-based company over an unspecified timeframe.
Serbia invited bids for the majority stake in December without setting a minimum price.
Beogradski Sajam, fully-owned by the state, and the Balkan country’s largest drug maker, Galenika, are the only major Serbian state-owned companies whose privatisation this year has not been delayed due to the financial downturn.
Beogradski Sajam’s net profit rose to 148 million dinars ($2.26 million/1.58 million euro) in 2008 from 120 million in 2007, according to Serbian Business Registers Agency data.
The company has 106,000 square metres of exhibition space in the capital Belgrade. It employed 231 people in 2008.
Verano Motors, the authorised dealer of French carmaker Peugeot for Serbia, is part of Verano Group, which was founded in 1991 in Belgrade by Radomir Zivanic. Besides car dealing, the group is also active in investment and banking.
(1 euro=93.6755 Serbian dinars)