Temporary halt in C market privatization

The Agency for Privatization decides to temporary halt the privatization of the remaining share package (16,26%) at Trading shareholder company C market Beograd until in cooperation with the Ministry of Economy defines important privatization process elements so that prerequisites for setting up higher price of share sales package.

Public tender for sales of state-owned capital in C market via tender was published August 10, 2012 and Tender commission decided March 1 2013 decided to start negotiations with one of the bidders, Delhaize Group SA Belgium. The initial share price at C market in tender procedure started in 2012 was established based on estimation of the capital on December 31, 2011. The initial price of the remaining share package in C market totaled EUR 9.576.190,72, i.e. EUR 295,45 per share, the Agency for Privatization announced.

During 2013, the Agency for Privatization two times made a decision on temporary privatization halt (April 5, 2013 and October 2013) since during the period of negotiations with a bidder on tender was informed by the legal authorities that it was necessary to halt the privatization process temporary until investigation of criminal activities with respect to transaction in 2005 end.

According to the last report of the authorities, primary legal obstacles for implementation of tender sales of the remaining package of shares in C market no longer exist. Having in mind short deadlines for termination of the transaction and time flow longer than two years as of the moment of estimation of entity capital value, the Agency for Privatization estimated that terms for temporary procedure halt were fulfilled. The Agency informed the Ministry of Economy on current process of implementation of tender sales and asked for instructions for further steps.

The provision of Article 25a Paragraph 1 of the Law on privatization governs that halt in privatization process lasts until there are reasons which disable capital sales, i.e. property, 180 days longest after decision on procedure halt as well as that until privatization process is stopped, all deadlines are on standby, the Agency announced.