"Marfin Investment Group" interested in "Jat" - expansion of Greek company after takeover of "Olympic Airlines"

As "Novac" learned from the circles close to the Government of Serbia, Greek "Marfin investment group" is interested in takeover of "Jat". This finance group is present in Serbia through Marfin Bank and Department Stores "Beograd", which they bought in the consortium with "Verano motors", and it has experience in field of air transportation.

Namely, they bought Greek national air transportation company "Olympic Airlines" at the beginning of the year. This fallen national giant, which had been financed by Greek tax payers over the last few years that preceded its privatization, was sold to "Marfin Group" for 177m EUR. That acquisition was approved by Greek public because, as the government's officials explained, the state was spending 1m EUR a day on keeping the company in business.

In addition to Greek air transportation company, "Marfin Investment Group" bought 50% of Swiss "Ambulance international Rent-a-Jet" for 15m EUR. This airliner offers its services to corporations, government and non-government organizations, as well as the individuals for the needs of medical transportation.

The wish of "Marfin Group" to buy Serbian air transportation company is not unexpected for those who are familiar with the operations of this finance group, which has its branches all around Europe. Following the takeover of "Olympic", it was only the question of time when it would start expanding the market. The idea of the management of "Marfin" is to merge "Jat" with "Olympic" and make a strong regional company that would then start conquering the markets of neighboring countries.

After last year's unsuccessful privatization, "Jat" is still in an unenviable situation since it operates with big losses. In the first nine months of this year, the company registered 11m EUR worth of losses. The business losses in 2008 amounted to 29m EUR. When financial losses are added to that amount, the conclusion is that the national airliner of Serbia registered total losses of 80m EUR. Although the new management of "Jat", led by Srđan Radovanović, presented the new plan for keeping "Jat" from making new losses, instead of increase in number of passengers, we can expect fewer passengers because of the economic crisis and smaller purchase power of our citizens.

On the other hand, "Marfin investment group" is the investment company that was founded in 1998, and it owns banks, insurance companies, hotels, hospitals, air transportation companies, investment funds. It operates on the territory of whole Europe, and its stocks are listed on the Athens Stock Exchange and the London Stock Exchange.

(Note: complete text is taken over from newspaper "Blic" of November 21, 2009)

Marfin Investment Group Greece

Adriatic Bank a.d. Beograd

Air Serbia ad Beograd

Vlada Republike Srbije

Robne kuće Beograd d.o.o. Beograd

VERANO MOTORS d.o.o. Beograd

London Stock Exchange / Londonska berza

Athens Stock Exchange

Olympic Airlines

Ambulance international Rent a Jet

Srđan Radovanović