As Nomura company suggested - sale of "Magnohroma" in two parts, sale of Factory of Electro-thermal Products in June 2005

According to the plan of the Privatization Agency, the tender for sale of Kraljevo-based Factory of Electro-thermal Products (FETP) will be announced in June 2005. This factory operates as a part of Public Company "Magnohrom", which entered the restructuring process on March 4. If necessary conditions are created, entire "Magnohrom" will be privatized until the end of 2005. After annunciation of the prospect of "Magnohrom" at the beginning of March, eight companies sent the letter of interest in procurement of FETP, whereas seven firms are interested in procurement of Factory of Fireproof Materials.

London-based Consulting Company "Nomura" suggested that "Magnohrom" should be sold in two phases. The first phase is the sale of Factory of Electro-thermal Products, whereas the second phase encompasses sale of the remaining part of the company.

In the following month, in compliance with the privatization measures of the Privatization Agency, all "Magnohrom's" creditors should submit their claims.