Foreign strategic partner in MK Commerce, agreement by Privatization Agency necessary

Prior to the end of 2005, strategic partner from one of the European countries will become the majority owner of sugar refineries of MK Commerce. The share of that strategic partner in MK Commerce will be bigger than one half of total assets of this Novi Sad-based company. For that transaction, MK Commerce will ask Privatization Agency for agreement, since, according to the contract from 2002 on privatization of three sugar refineries, Miodrag Kostić is obliged not to sell them within five years.

"Negotiations on that strategic partnership with one serious European company are underway and are going well. The public will know which that company is until the end of 2005", said Jovan Purar, acting general director of MK Commerce, denying information that the company is from Austria.

Miodrag Kostić won the title of "Serbian Sugar King" by procurement of three sugar refineries, in Pećinci, Bač and Kovačica, on the tender for €3 each, whereas he bought Vrbas-based sugar refinery on the stock market for about €20m. Lately, there have been roomers that Kostić is incapable of fulfilling his obligations related to amount of investments he was supposed to realize according to the contracts. It is assumed that that was the reason he started to search for strategic partner with bigger capital.