Ten companies interested in Galenika – Opening of bids on October 4

Ten companies have submitted requests for the purchase of the tender documentation for the privatization of Galenika, whereas eight of them have already paid RSD 250,000. The bid submission deadline is October 2, and the opening of the bids is to take place on October 4.

The state offered Galenika for EUR 25 million based on the repayment of the banking debt, plus one euro, as the starting price at the public auction for a 93.7% stake in Galenika.

The purchaser also obliges to finance the social program if the current number of workers exceeds their need.

The starting price of Galenika is only one euro, as the competent institutions explain, as it entails the payment of commercial credits, but also because the company has a negative capital of EUR 152 million, as estimated by authorized valuers on the final date of 2016. This happens when various credits and liabilities exceed the property and the value of a company.

In the meantime, the state has converted Srbijagas and Tax Administration claims into capital. Based on RSD 14.7 billion of liabilities towards state creditors, the ownership of the Republic of Serbia over Galenika has increased from 85% to close to 94%. The share of minority shareholders has thereby dropped from 15% to slightly over 6%.

The state also agreed for the company which is to take the Zemun facility to oblige to pay for the social program. The payment of EUR 400 per year of service has been agreed. Galenika currently has 1,400 workers, but interested companies are only prepared to hire between 700 and 900.

The deadline for the workers to opt for the social program is today, September 21, 2017. As things stand, not many have responded.

– So far, around 130 of the 1,400 workers have applied for voluntary leaving. I believe that another 20 applications will arrive today. The response would certainly be greater if the severance payment was greater. We believe that EUR 700 per year of service would be acceptable – says Zoran Pantelic, head of the Independence union at the factory.

Galenika a.d. Beograd

JP Srbijagas Novi Sad

Poreska uprava Srbije

Galenika

privatization of Galenika

sale of Galenika

Srbijagas

Tax Administration

social program in Galenika

severance payments in Galenika

Zoran Pantelic

Independence union

Galenika layoffs

layoffs in Galenika