Bulgarian consortium takes over glass factory in Paracin - Annex to EUR 35 million agreement signed

A consortium comprising Bulgarian companies Rubin and Glass Industry signed today an annex to an agreement on the acquisition of 63-percent stake in Paracin-based Serbian Glass Factory from Srbijagas at the price of EUR 35 million.

This document was signed by Srbijagas CEO Dusan Bajatovic and Chairmen of the Supervisory Board of Sofia-based Corporate Commercial Bank Cvetan Vasilev. This bank is the owner of aforementioned Bulgarian companies that are taking over the Paracin glass factory, and it has provided a guarantee for that transaction.

The new owner of the glass factory has taken on the obligation to invest EUR 22 million in the construction of a new glass factory in Paracin and the modernization of the old factory, and it will also provide EUR 10 million to repay the factory`s debts to banks and the Development Fund.

The Bulgarian consortium will pay half of required EUR 4.5 million for the social program, whereas the second half will be provided by the Serbian government. Workers will receive EUR 300 per year of work. So far, about 500 of the total of 1,700 employees have applied for the voluntary leave.

Bajatovic stressed that the plan was to finish the new glass factory in one year, adding that its annual production capacity should amount to 120,000 tonnes of glass, while the annual revenue from glass sales was expected to reach EUR 60 million.

Bajatovic added that EUR 35 million paid to Srbijagas for the stake in the Paracin glass factory would cover Srbijagas` investment in the factory and all its claims.