"Zorka" close to third tender - "Farmakom" to rent Šabac-based holding until new owner appears

Minister of Economy, Mlađan Dinkić, announced yesterday (March 26, 2008) that "Zorka Holding" from Šabac would be rented at the end of April and that the state would increase subventions for that holding in order to prepare it for the third tender.

- Starting April 30, "Zorka Holding" will most probably be rented to concern "Farmakom" from Šabac on six months - said Dinkić on the occasion of his visit to "Zorka" and reminded that "Farmakom" had already rented "Factory of Artificial Fertilizers" from "Zorka's" system and that it "proved it can employ the workers".

Minister has announced that the new, third tender for "Zorka Holding", which has 930 workers and 9 units, the biggest of which are "Zorka Non-ferrous Metallurgy" and "Zorka Artificial Fertilizers", will be organized.

- In order to prepare "Zorka" for privaization, the state will increase subventions to this company from 12 to 19m RSD per month, 17m RSD of which are intended for the holding and 2m RSD will go to company "Zorka Herbs Protection". Prior to the end of April, the state will set aside 135m RSD for merging the years of work for the workers and, in return, they should give up legal actions for unpaid social and pension security - said Minister and suggested that the property of the company, and not capital, should be offered for sale on the tender and that debts should be written-off.

So far, two tenders for sale of that holding, of which debts amount to 129m EUR, have failed. The second tender for sale of "Zorka Holding", "Zorka Artificial Fertilizers" and "Zorka Non-ferrous Metals" was declared unsuccessful on March 12. According to the sources close to the Tender Committee, the only bidder, British company MDIL, is in connection with British-Indian concern "Binani", which left 240m RSD worth of debts in factory "Zorka Non-ferrous Metallurgy" after two-year rental that expired in 2006. The first tender for privatization of Zorka Holding, Zorka Non-ferrous Metallurgy and Zorka Artificial Fertilizers was cancelled in April 2007, and MDIL took part in that tender as well.