EPS not to be sold for at least another year – Reorganization process ongoing

The long since announced reorganization of EPS should have resulted in turning the enterprise into a joint-stock company on July 1. The last announcement to that end was made just six months ago by the former director of EPS, Aleksandar Obradovic. As Novosti learns, the process will be late by at least a year. At the same time, this is the first step, according to experts, that could lead to the sale of the largest public enterprise.

Many decisions made by Obradovic have been modified or stopped since he left EPS. Among those is the idea of turning the enterprise into a joint-stock company in order to find, as soon as possible, a strategic partner which would invest in the company. The new management has drawn the procedure out.

That the structure of EPS will not change in at least a year has been confirmed for Novosti by the chairman of the Executive Board of EPS, Branko Kovacevic.

– Obradovic kept on announcing the restructuring for July 2016, but that process has been extended. We need more time. So far, we have turned 14 business entities into two. Telekom needed ten years to turn into such a company, and EPS is five times larger.

When asked whether this is a sign that the state is looking for a purchaser for EPS, Kovacevic says that it is one of the options, but that different models are being considered and that they are more interested in investors than in buyers.

– Only after we’ve entered the stock exchange will the discussion about the shares become relevant – Kovacevic says. – What needs to be considered is not only the sale to a majority owner, but a possible capital increase as well. There’s a possibility of finding a strategic partner for one job only, for example, for the construction of an electrical power plant. So far, the EPS property inventory has been prepared and we are now waiting for the Government’s decision regarding what will stay in the company’s ownership, and what will be taken by the state.

If it’s not planning to sell at least a part of EPS, the enterprise doesn’t have to become a joint-stock company, says Slobodan Ruzic, PhD, an electrical engineer and a former advisor to the minister of energy.

– The restructuring of EPS is only important if they’re looking for a partner for considerable investments. The state won’t find it easy to find an investor which will agree to invest in the company which is being run by people put into their positions by political parties. No one will agree to give money, especially not for a majority ownership, with Serbia in the managing capacity.

The Ministry of Economy: Reformation is the goal

– The sale of EPS is not being considered at the moment – the Ministry of Economy has said. – The priority of the Government is the reformation and a very important reorganization of EPS to the benefit of all consumers.

As for the modifications to the Law on Privatization, which have been speculated in the media to be able to aid the sale of EPS, the ministry has said that the action plan envisions the modifications in the final quarter of 2016, but only if the analysis of regulations, which is being carried out in cooperation with several state authorities and the Anti-Corruption Council, shows that the modifications are necessary due to risk of corruption.

Elektroprivreda Srbije ad Beograd

privatization

strategic partner

stock exchange

EPS

EPS reorganization

Aleksandar Obradovic

Branko Kovacevic

Slobodan Ruzic

Law on Privatization

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