New tender announced for sale of Paper factory in Belgrade

Privatization Agency has announced tender for sale of 83.9% of stocks of Paper factory in Belgrade at minimum starting price of 1.67m EUR, and the deadline for submission of obligatory bids is July 15.

According to the public invitation published on the web site of the Agency, the bidder is obliged to offer the price for 100% of stocks of the company since the Share Fund, following the signing of the Sales contract, will send an invitation to all stockholders to join their stocks.

Condition for participation in the tender is that potential buyer has been dealing with production of paper and cardboard and organization of collecting of old paper over the past three years and that its income in 2007 amounted to at least 25m EUR.

Tender documentation will be available starting from May 26 and the written request for purchase of that documentation can be submitted prior to June 30. The precondition for submission of bid is paid deposit or submitted auction guarantee worth 300,000 EUR.

Paper factory has already been sold once on the auction in November 2005 to company "PAN papir industrija" from Zagreb for 94.3m RSD, but the Agency broke that sales contract two years later due to unfulfilled obligations. The buyer had promised to carry out investment program, which included investing of 5m EUR in primary production within 5 years (1m EUR per year), commencement of production and establishment of continuity within the following three years, as well as payment of all late salaries to the workers.

However, none of the points from the Contract has been fulfilled, in spite of numerous deadline extensions.