State not to sell BAS' shares to Damjan - City of Belgrade interested in acquisition

The Government of Serbia will not accept the offer of Banja Luka-based Damjan for purchase of shares of the Belgrade Bus Station (BAS), State Secretary for Economy and Privatization of Serbia Nebojsa Ciric said today.

Ciric said at a press conference that the City of Belgrade was interested in taking over 40% of BAS' shares owned by the state and the shares of minor shareholders in order to become the majority owner of the bus station.

Privatization of bus stations in Serbia, as Ciric reminded, had to be approved by the Republic and local self-government because it is an activity of interest to all citizens.

Last week, Nezavisnost trade union of the Belgrade Bus Station (BAS) warned minor shareholders of that company, who own 60% of the company's shares, not to accept the offer made by Damjan from Banja Luka because the price of RSD 760 per share was low.

The company Damjan announced a bid for takeover of 40.31% of BAS' shares at the price of RSD 760 per share in late 2010, and the bid will be open until January 18.

In 2009, BAS registered a revenue of over 1 billion dinars and a net profit of 1.3 million dinars.

Trading in the shares of BAS on the Belgrade Stock Exchange started in May 2007. The current price of that security is RSD 780, the maximum price over the last year was RSD 1,080, while the minimum price amounted to RSD 630.

The company Damjan, which is in the hotel business, stated that it had provided the funds for acquisition of BAS' shares from a bank loan.

The Managing Board of BAS assessed the offer made by Damjan as unacceptable and added that the offered price was 48.32% lower than the accounting value of shares of that company.

The opinion of the BAS management is that Damjan has no experience in the primary field of work of BAS, which puts in danger the success, safety and continuity of operations of the Belgrade bus transportation company, as well as fulfillment of development plans.