Filip Zepter gave up takeover of "Prosveta"

- The consortium comprising University of Singidunum in Belgrade and company "Zepter Book World" has given up takeover of publishing company "Prosveta" because it would not be allowed to change the purpose of bookstore "Geca Kon" in Knez Mihailova Street in Belgrade – Privatization Agency announced today (May 12, 2009).

This consortium was the first-ranked bidder on the tender for sale of 70% of capital of "Prosveta". It offered the price of 5.7m EUR and 2m EUR worth of investments within the next two years.

Extended deadline for signing of the sales contract expired yesterday, and the Agency claims that it accepted all requests of the first-ranked bidder whose representatives did not show up at the agreed time to sign the contract.

The bidder explained that the contract terms were unacceptable since they excluded the possibility of disposal of bookstore "Geca Kon".

The Agency points out that it did not accept that request because the protection of that bookstore is stipulated by the tender and the decision of the Government of Serbia, which is something all participants in the tender knew when they submitted their bids.

The Agency will collect the auction guarantee worth 200,000 EUR from the first-ranked bidder, while the second-ranked bidder – publishing, trade and marketing company “Media II” from Belgrade – will be invited to sign the contract on purchase of "Prosveta".

Company "Media" offered the price of 3.2m EUR for "Prosveta", as well as investments worth 100,000 EUR in one year.