Wait for better price for Galenika

(Photo: galenika.rs)

The acting manager at Galenika, which was listed among 502 firms to go on sale, Zivormir Novakovic, thinks that at this moment it will be difficult to find a buyer for the company due to, as he says, negative company capital.

He, namely, thinks that Galenika could, if the agreement would be made with banks and suppliers, become profitable which would significantly increase its value.

Galenika is listed among 502 firms for which a public call for investors’ letters of interest collection for privatization which has been published today at the site of the Agency for Privatization and Financial Times.

-We are ready for everything the Government suggests. It is a matter of owner how and what it will decide and the decision whether Galenika will go private now or they will wait since business operations have been stabilized and the fact we showed profit in 1H – Novakovic said for Tanjug.

He pointed out that, in agreement with the Government, i.e. a resource ministry, in the next period a model, method and time of privatization will be agreed.

-If the agreement with banks and suppliers would be made, Galenika might operate better and become a profitable company which would increase its sale value. Now, with negative capital, it will be difficult to find a buyer – Novakovic said.

However, since, as he said, the Law on privatization allows conversion of debt into capital and agreement with banks with respect to reprogram, Galenika could operate very successfully and be at significantly better price after two or three years.

- Then we would no longer be a burden neither for the state nor for anybody else – Novakovic concluded.