Contract on sale of Belgrade's brewer BIP terminated

The Privatization Agency has terminated the contract on sale of Belgrade's Beer Industry (BIP) to Lithuanian-Swedish consortium.

- The contract on sale of 51.9% of the brewer, which was signed in late July 2007 with the consortium comprising Lithuanian Alite and Swedish United Nordic Beverages, was terminated after the expiration of the extended deadline because the buyer failed to fulfill the obligations - the Agency announced today (February 17, 2010).

The contract was terminated because the buyer failed to purchase the stocks and fulfill the investment obligations of 2.6m EUR for the second year of operations, as well as because it sold fixed assets to pay the tax obligations and use the property of the privatization subject contrary to the provisions of the contract.

The Share Fund, in accordance with the Law, will appoint temporary representative of the capital for the needs of further management of the company.

The Lithuanian-Swedish consortium paid 21.4m EUR for 51.9% of capital of Belgrade's brewer. The consortium was bound by the sales contract to invest 5.1m EUR in the factory within the first three years, as well as to relocate the production units from Belgrade's center.

Total number of the contracts that the Privatization Agency has terminated to the date because the buyers failed to fulfill the contractual obligations is 517.