RTB Bor on London Stock Exchange as of 2014 - Registration upon construction of copper smelter

Minister of Economy and Regional Development Nebojsa Ciric stated that the Mining Smelter Basin (RTB) Bor would register as a company on the London Stock Exchange upon completion of the construction of a new copper smelter in Bor in 2014.

- If RTB as a company registers on the London Stock Exchange upon completion of the construction of the new copper smelter, one of possibilities is the announcement of an initial offer for the sale of 20-30 percent of capital of that Bor-based giant. The money from that sale would be spent on new investments or the repayment of old debts - said Ciric.

He stressed that the reorganization of RTB into a single company was expected to be finished by the year's end and added that the majority stake in new RTB would remain in the possession of the state. In this way, reorganization of four enterprises within RTB into a single company will additionally cut the costs because there will be less administration and a single procurement system, which will contribute to more efficient performance of the company in the future.

- The aim is to write off part of the liabilities of RTB, while the rest should be converted to stakes in the new company. Since RTB owes over EUR 100 million to banks Standard and Euroaxis and Greece's Mitileneos, the idea is to first start negotiations with these commercial creditors. That should be followed by the talks with the government creditors. RTB owes about EUR 20 million to NIS, and Gazpromneft can get up to a 2% stake in the future company in exchange for that money. For the sake of formation of a profitable company, transformation of RTB into a single company will most probably be carried out through a 24-hour bankruptcy, and the state's obligation is to keep all current workers at the new company - the minister of economy added.

Ciric underlined that the negotiations on investment in the construction of plants in the city of copper were underway with three world-renowned companies.