Sremska Mlekara buys DIB Bujanovac for EUR 686,374 – Purchase of Duvanska Industrija Ljubovija planned as well

As reported on the Ministry of Economy website, Sremska Mlekara bought 57.93% of the capital of Duvanska Industrija Bujanovac for EUR 686,374, and, as the director of Sremska Mlekara, Rade Basta, said earlier for Juzne Novosti, the idea is for DIB to be revived and for cigarette production to start again in Serbia's southernmost area.

Sremska Mlekara signed the purchase agreement on April 13, offering only EUR 20 above the starting price, defined by the Ministry of Economy.

Considering that Mlekara was the only bidder, a part of DIB's capital was sold to it, and the ministry, as they say, had checked the Sremska Mitrovica-based company and concluded that it met all the requirements.

Prior to signing the agreement, the Ministry of Economy acquired, in line with the Law on Privatization and the Decree on conditions, manner, and procedure of sale of capital and property by method of public collection of bids, an opinion by the Ministry of Finance – Administration for the Prevention of Money Laundering on the lack of obstacles on the side of the purchaser to the signing of the agreement, says the ministry's website.

Let us remind that, according to the Business Registers Agency, 100% of the capital of Sremska Mlekara is owned by RA.B Capital Group LTD, a company registered in Cyprus.

The current director, Rade Basta, a close associate of Ivica Toncev, said that he had nothing to do with the Cypriot company and that Mlekara planned to privatize Dunavska Industrija Ljubovija as well.

– We want to employ people, make them return. We want the production to increase and new lines to be installed. We will ask the state for the permission to produce cigarettes. We want a local brand attractive to everybody – Basta said at the time.

DIB currently employs 100 people, and, as Basta announced, agriculturists from the area might hope to find work producing tobacco for DIB.

Sremska mlekara d.o.o. Sremska Mitrovica

Dib a.d. Bujanovac

Ministarstvo privrede Republike Srbije

Ministarstvo finansija Republike Srbije

Uprava za sprečavanje pranja novca Beograd

Vlada Republike Srbije

DIB

Administration for the Prevention of Money Laundering

Rade Basta

sale of Duvanska Industrija Bujanovac

Law on Privatization

RA B Capital Group LTD

Duvanska Industrija Ljubovija