New tender for sale of Galenika to take place by September 1 – State offering majority stock

The state’s stock in Galenika will increase to over 90% of the shares following the conversion of the company’s debts, it was confirmed for RTS by the competent ministry. The state will offer a majority stock of Galenika up for sale at a new tender.

Experts estimate that the sale of a majority stock is far more attractive to investors that the previous offers of strategic partnership.

The attempt at a strategic partnership along with the sale of 25% of the state’s shares in Galenika this February ended unsuccessfully. The competent ministry has informed the unions about what is being offered through the new tender.

Zoran Pantelic of the Independence union says that the new tender will be opened by the state by September 1 and that, this time, it is the majority capital of the company that is being sold.

– The tender conditions and everything accompanying the tender procedure are now being prepared – Pantelic says, citing the ministry’s press release.

The fate of Galenika has circled around three numbers for a long time now. The courts are to decide on the uncharged for EUR 120 million in drugs delivered to local wholesale pharmacies. On the other hand, the company owes EUR 110 million to state companies and over EUR 70 million to banks.

The Ministry of Economy has reached an agreement on the model for resolving this problem.

– The banks agree in principle that a debt of EUR 71.74 be bought out through a one-off payment of EUR 25 million. The buyout is conditioned by the carrying out of the privatization process and the payment from the purchaser’s funds. The process of conversion of the claims of the biggest creditors, Srbijagas and the Public Debt Administration, is currently in progress. Following this, the stock owned by the Republic of Serbia, which is to be put up for sale, would amount to over 90% of Galenika’s total assets – the ministry says.

Experts are certain that Galenika has a better chance of finding a purchaser this way than it did when it was seeking a strategic partner.

Economist Danilo Sukovic believes that the Government’s new decision will be more effective than the previous one.

– When an owner has a majority stock, it decides about its assets by itself and is more interested in the efficiency of the company it is buying, thereby ensuring the company’s success in the future – Sukovic explains.

Having achieved a mildly positive result last year, 1,400 workers of Galenika are waiting for a new owner.

The competent ministry is still deciding on which criteria the potential owner needs to meet. So far, it is known that it will have to continue producing and investing and keep an optimum number of employees.

Galenika a.d. Beograd

Ministarstvo privrede Republike Srbije

JP Srbijagas Novi Sad

Uprava za javni dug

sale of Galenika

Independence union

shares of Galenika

Zoran Pantelic

tender for sale of Galenika

Danilo Suković

debt of Galenika