FAM sales contract terminated

The Privatization Agency terminated on Thursday an agreement on the sale of the Oil derivatives manufacturer Lubricant Factory FAM in Krusevac. The agreement was terminated because the buyer failed to respect the obligations related to the social program and the disposal of property, the Privatization Agency announced.

According to the Agency's statement, after several deadline extensions, the buyer failed to complete the mandatory purchase of shares from minor shareholders.

Pursuant to the Law on Privatization, the company's assets, the subject of the sale, have been returned to the possession of the state. In as short time as possible the Privatization Agency will appoint a temporary representative of capital and carry out all the necessary activities in order for the production to continue.

The lubricant factory FAM was sold on a tender, on February 5, 2007, to a consortium of juristic persons PZP Beograd and Petrobart, both from Belgrade, at the price of EUR 25 million.