Two companies interested in buying Jelsingrad Livar – More than 67% of shares up for sale

Two companies have submitted bids for the purchase of the shares in the Banjaluka-based company Jelsingrad Livar from the majority owner, Livar Group.

The general manager of Jelsingrad Livar, Miodrag Brdar, confirmed this, emphasizing that he couldn’t disclose the details about the potential purchasers at the moment.

– I have been informed by Livar Group that two companies are interested in purchasing the shares, but that all other details are confidential at the moment – Brdar said and added that he expected the company’s operations to be revitalized with the new owner.

The heads of Livar Group offered 23,990,415 shares through the Banjaluka Stock Exchange, making up 67.98% of the company’s capital assets, and the bid submission deadline expired on July 4.

Brdar pointed out that the company’s capacities were full at the moment when it comes to the number of employees and that they had contracted jobs until the end of October.

– We are currently producing 120 tons of steel a month, and our plan is to increase the production to 150 tons by the end of the year and I believe we will succeed – Brdar said.

He emphasized that, in the two preceding months, they had raised the salaries of 27 production workers.

– Their salaries have been increased by around BAM 100 in line with the coefficient, and we intend to have their salaries increase in the upcoming period as well – Brdar emphasized and added that the company had 146 workers at the moment.

Around 75% of Jelsingrad Livar’s products are exported to the markets of western Europe, primarily to Italy, Germany, Spain and France.

This Banjaluka-based company also produces steel for local clients, namely Alumina Zvornik, Rudnik and the Thermal Power Plant Stanari and ArcelorMittal Prijedor.

Livar became the majority owner of Jelsingrad in 2005 in a privatization process, and the crisis period for the Banjaluka-based company started in 2014, when the oil prices dropped and their strategic partner from France went down.

Miodrag Brdar pointed out that business reports of Jelsingrad Livar from the first half of 2019 had not yet been completed, but that he expected a better result than in 2018.

– We reduced amortized costs and therefore had another auditing report done, so we are waiting for the results. The company is not in a crisis and the only thing that can happen is an ownership transformation – Brdar said.

sale of shares of Jelšingrad Livar

purchase of Jelšingrad Livar

sale of Jelšingrad Livar