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Serbia sells PKB to UAE-based Al Dahra

Author Radomir Ralev
Serbia sells PKB to UAE-based Al Dahra Source: Serbian Privatisation Agency

BELGRADE (Serbia), October 4 (SeeNews) - Serbia signed a contract for the sale of agricultural company Poljoprivredna Korporacija Beograd (PKB) to UAE-based Al Dahra Agricultural Company, the Serbian government said on Thursday.

Al Dahra will offer jobs to all of the 1,706 employees of PKB but the workforce of the company should be decreased to 1,000 employees in the next three years, Dragan Stevanovic, state secretary at the economy ministry, said in a government statement. 

A compensation equal to 450 euro per each year of work at the company will be offered to those of the current employees who decide to reject the offer of Al Dahra, Stevanovic added.

The UAE-based company won a tender for the acquisition of PKB in September, after placing a 105.05 million euro ($120.8 million) cash offer for the assets of the company, a 29% stake in Eko-Lab and 45.77% of the capital of Institut PKB Agroekonomik.

Al Dahra will pay an additional price for the livestock of PKB, equal to 100% of its estimated value, immediately before it takes possession of the Serbian company, the economy ministry said last month.

The price of the livestock of PKB will stand at about 17 million euro, Stevanovic said after signing the acquisition contract together with the executive director of Al Dahra's Serbian subsidiary, Khedaim Abdulla Saeed Faris Alderei. 

Serbia launched the PKB tender at a starting price of 104.6 million euro in August. The tender was open to legal entities mainly active in agriculture and trade in agricultural products. 

($ = 0.869402 euro)