"C market" sold to manager Radulović after 14 months, "Ashmore" pressed charges because of elimination

“The offer for takeover of ‘C market’ was successful, because over 120,000 stocks of company of company
’Primer Ce’, which is managed by Slobodan Radulović, were deposited yesterday by 12 AM, which was the last deadline”, two broker companies confirmed. The condition for successfull offer was sale of 34,000 stocks or 33.4%, but the new boss, as he obliged, will buy total of 100,000 stocks or 50%. In the following three days the money will be paid to the account of stockholders. The amount in question is €30m.

However, Vasa Dešić, vice-president of the Administrative Board of Association of "C market", which started procedure for sale of this company, say that they expect that "Primer Ce" will buy all other offered stocks at price of 25,800 CSD. It is believed that it will be all 154,000 privatized stocks, which means that Radulović and his partners will have to provide additional €15m.

“Ashmore”, the company for management of investment funds from London, which was disqualified by the Securities commission because of the violation of the procedure, issued announcement, as well. Because of this, "Ashmore" has pressed charges at the Trade Court in Belgrade with the request for issuing of temporary measures for stopping of sale of this company.

This financial company was ruled out of the race because it delivered banking guarantee for procurement of stocks in the name of one of the investment funds it manages and not in the name of the company who gave the offer. The Securities Commission reminds that, in accordance with the article 39 from the Law on Administrative Procedure and Procedure for Takeover, the guarantee had to bear the name of company "Ashmore investment management limited" from London that gave the offer for takeover of “C market” in October 2004. Vesna Vujić, PR of this commission, says that "Ashmore" was disqualified in accordance with the Law and that it is, for that very reason, illogical to expect stopping of the takeover of this trade company until the court’s possible sentence goes into effect.

There is also a question who actually buys "C market" since "Primer Ce" is founded only for purpose of takeover of our biggest market chain. The founders of “Primer CE” are "Delta" and many other local factories. "Delta" went out of this story, but it tried to buy "Ce market" on its own this summer. Since the Securities Commission does not question origin of the money of the buyers, it will remain the mistery whose €30m is in the fresh company "Primera Ce".

It is assumed that Mišković gives €30m for procurement of stocks and that Radulović will remain the manager with, maybe, some minor share. However, after the change in ownership structure, there is a problem with the investment, because, according to the estimates, several millions of euros are needed for modernization, renovation and working capital in order to make “C market” competitive on the market.