"Srbijagas" became majority owner of Serbian glass factory

Public company "Srbijagas" has become the owner of 63.32% of stocks of Serbian glass factory from Paraćin today (July 16, 2009) through conversion of debt of 34m EUR for gas into an ownership share in the company.

The Director General of "Srbijagas", Dušan Bajatović, said when he was signing the contract on conversion of debt into capital that the new business plan, which should determine the obligations of the owners and investments, would be finished prior to September 1st.

Bajatović said that, after three to five years and recovery of the factory, previous majority owner, Bulgarian company "Rubin", would have the chance to buy the stocks of Paraćin-based glassworks back.

In November 2006, Bulgarian "Rubin" became the owner of 65% of stocks of Glassworks for 100,000 EUR and the obligation to invest 25m EUR in it within the next five years and to take over all the debts.

"Srbijagas", "Rubin" and the Privatization Agency of Serbia signed the annex to the contract on privatization of Serbian glass factory, which made it possible for "Srbijagas" to become the majority owner of that company, while Bulgarian company may become the minority owner.

Bajatović said that the contract on privatization of Paraćin-based glassworks was not canceled because "Rubin" had fulfilled "major share of obligations" that it had taken over.

According to some earlier announcements of the management, "Rubin" has, so far, invested about 7.5m EUR in Serbian glass factory.

Serbian glass factory is the only factory in Serbia that produces packaging glass, and it currently has about 1,700 workers.