Progress in negotiations about Galenika debt – Banks ready to compromise

The British-Russian consortium Frontier Farma – Petrovax Farm has not given up on purchasing a 25% share in Galenika.

According to well-informed Blic sources from the Government of Serbia, negotiations with the banks to which Galenika owes about EUR 70 million have continued and an agreement might be reached by the end of the year.

– At the first meeting of the British-Russian consortium with the banks, no agreement was reached. It hadn't been expected either, as the meeting served for both sides to present their requirements. However, the negotiations have moved forward, the banks have relented slightly and are ready to further negotiate about the conditions of the reprogramming. We expect that they will make the final decision by the end of the year – the Blic source says.

According to him, the consortium Frontier Farma – Petrovax Farm is still interested in a strategic partnership.

– The negotiation deadline expires after the New Year. There's still time to complete the sale of a part of Galenika shares and for everybody to breathe a sigh of relief – the Blic interviewee emphasizes.

The British-Russian consortium has offered the requested minimum of EUR 7 million for 25% of the ownership in the Serbian pharmaceutical factory and is ready to keep 700 of the 1,400 workers. In the meantime, however, there appeared an obstacle of Galenika's debts towards commercial banks.

Galenika a.d. Beograd

Galenika

Frontier Farma

Petrovax Farm

privatization of Galenika

negotiations about strategic partnership with Galenika

sale of Galenika