Government of Serbia officially terminates Galenika privatization procedure

The Government of Serbia has terminated the process of privatization of Galenika, at the suggestion of the commission which has negotiated with the sole bidder for the purchase of a share in the Belgrade-based pharmaceutical company, the government’s website reported.

The privatization procedure was being carried out using the strategic partnership model through the sale of a 25% share at the minimum price of EUR 7 million.

The British-Russian consortium Frontier-Petrovax was the sole bidder, and the agreement was not reached due to Galenika’s debts towards banks of around EUR 70 million.

Galenika also has debts toward the state of around EUR 160 million and the Government has recommended the creditors not to issue orders for freezing the factory’s account, that is, not to carry out the procedure of the collection of claims, before the final agreement with the commercial creditors is reached, and no later than March 31, 2017.

The Ministry of Economy is preparing a new model of privatization of Galenika, which is soon to be announced.

So far, there have been several unsuccessful attempts to sell the company which employs around 1,400 workers.

Galenika a.d. Beograd

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

privatization of Galenika

sale of Galenika

Frontier Petrovax consortium

Frontier Petrovax

Frontier

Petrovax