Initial price for PKB at EUR 104.5 million – Tendering for privatization starts, bid submission deadline September 10

The Ministry of Economy has opened the tender for the sale of the property of PKB Korporacija at the initial price of EUR 104.5 million, and the bid submission deadline is September 10.

The offer includes not just the property of PKB, but also the property of its subsidiaries – Ekolab, Institut PKB Agroekonomik and Veterinarska Stanica PKB.

It also includes 16,785 hectares of land in Palilula, Surcin and Zrenjanin, office buildings, equipment, spare parts and cattle.

The land, buildings and equipment have been estimated at EUR 208.5 million. A 29% stake of the Equity Fund in Ekolab amounts to EUR 214,700, and a 45.77% stake in Institut PKB Agroekonomik is evaluated at EUR 431,300. The initial price equals 50% of the estimated value. The cattle has been estimated at EUR 17.3 million, but this amount was not included in the initial price. The price of the cattle will be determined in line with the inventory before the purchaser acquires the property and will equal 100% of the estimated value of the cattle on the date of the inventory, it is said.

Eligible tenderers are legal persons with agriculture and/or trade of agricultural products as their primary activity which had an income of at least EUR 400 million in the previous year either independently or on a consolidated basis. A consortium with a share of at least 51% and meeting the terms of the tender is also eligible.

The Autonomous Trade Union of PKB has warned that the initial price at the tender is at least four times lower than the real price.

– We asked the minister why the offered price is lower by EUR 50 million than in 2015, when it amounted to around EUR 154 million and also considering that the price of land is rising, and they said that they would explain why the price is as it is – the union's president, Milisav Djordjevic, told Beta.

Politika reminds that the Ministry of Economy opened an invitation for letters from investors interested in taking part in the privatization of PKB and its subsidiaries – Poljoprivredna Avijacija PKB, Ekolab, PKB Agroekonomik and Veterinarska Stanica PKB – last year.

At the time, IM Matijevic, MK Komerc, Al Dahra from the UAE, as well as undisclosed companies from the UK, Singapore and China, were interested in the company. No binding bids were sent, however.

Politika adds that the union claims that the combine has been mostly visited by representatives of Arab and Chinese companies in the past few months.

PKB Korporacija a.d. Beograd

EKOLAB DOO NOVI SAD

Institut PKB Agroekonomik Beograd

Veterinarska stanica PKB Padinska Skela

Poljoprivredna avijacija PKB d.o.o. Beograd

IM Matijević d.o.o. Novi Sad

MK Commerce d.o.o. Novi Sad

Al Dahra Rudnap d.o.o. Irig

PKB Korporacija

Poljoprivredna Korporacija Beograd

Poljoprivredni Kombinat Beograd

PKB

privatization of PKB

sale of PKB property

tender for PKB

Ekolab

Institut PKB Agroekonomik

Veterinarska stanica PKB

Autonomous Trade Union of PKB

Milisav Djordjevic

Poljoprivredna Avijacija PKB

Industrija mesa Matijevic

MK Komerc

Al Dahra