"SIMPO" goes on sale

"Simpo" will go on sale through tender, as confirmed in this company and in the Agency for privatization. Considering that it is a matter of already privatized company, majority owners are small share holders, and it will be used a new way of sale.

This way of sale, as stressed by Aleksej Misailovic, director of the supervising center in the Agency for privatization, means that the offer in tender should contain only state's package of shares, regardless it is minority part. Then, the buyer is obligated to buy off all shares from the small share-holders by the same price, if they want to sell.

There won't be any joint moves with small share-holders, or any making of the majority package in advance. The model is concepted in such way that on the tender is offered only state's package of shares, regardless it is minority part, and the contract of sale has in its contents an obligation of the buyer of state's share to buy under the same price all shares from the small-share holders, and for this sum in total, before signing the contract of sale, should make a deposit on the money.

The changes of law brought last summer support this kind of tender sale in the matter of companies that have a majority private capital. Together with "Simpo" this model of sale will also be applied at only 4 more companies: PIK "Becej", "Termoelektro" Belgrade, "Zavarivac" and "Majevica". The advantage of tender sale for these companies is the right of previous release of debts, so it is more attractive to the buyers.

Ljubomir Ilincic, member of the Managers Board of "Simpo" company points out that this decision about tender as a sale method was accepted as the best possible solution, having in mind further developping plans of "Simpo".

With furniture sale "Simpo" has agricultural, conditor production, restaurant management, food trade chain... With original company there is 11 more dependent companies of 100% of Simpo's ownership. So, they need a buyer, a strategic partner who can secure development of all their interests.

Within the next ten days the release of debts should be done. Then there will be a publication of an ad for the election of privatization advisor, then creation of tender documentation and then after all the tender. So, in the best possible case, Simpo could get a candidated buyer at the earliest at the end of the year.

In the meantime all owners of Simpo's shares, and there's 8.000 of them, can deal with their shares on the stcok exchange. At the moment the price of Simpo's share on the Belgrade stock-exchange is 1.450 dinars, which is 3 times less than its real accounted value. After release of debts towards the Agency for deposit insurance which is about 15-20 millions eur, and conversion of debts towards the state in its share's deposit, management of Simpo is expecting for the price of shares to jump up.

The real accounted value of Simpo is at the moment according to the actual prospect of the company around 70 millions eur, and there is still no evaluation under which price it could be sold. Ljubomir Ilincic admits that so far they haven't received any letter of potential interest from none strategic partner.