Agency to start negotiations with "MK Group" about purchase of property of "Genex" on Kopaonik

(Miodrag Kostić)

Privatization Agency of Serbia announced today (November 18, 2008) that it had decided to start negotiations with MK Group, the only bidder on the tender for sale of tourist facilities of Internacional CG on Kopaonik mountain.

MK Group offered 23m EUR for hotel Grand and other Kopaonik-based tourist facilities of Internacional CG, which was also the minimum price for participation in the tender.

MK Group participates in the tender in partnership with Austrian tourist group Falkensteiner Michaeler.

Deadline for completion of negotiations is 60 days from the day the negotiating committee is formed, but it can also be extended for another 30 days.

According to the investment program, the new owner should keep the existing functions of the hotels and suites for, at least, next 10 years and provide the level of quality of minimum four international stars for hotel "Grand" within two years from the day of the takeover and for Sunčani Vrhovi within three years from the day of the takeover.

According to the tender terms, the new owner of the property of "International CG" (a part of former "Genex") on Kopaonik mountain will also have to keep the existing purpose of apartments that are used by the employees within three years from the day of the completion of transaction. Minimum obligations from the social program include keeping of all 253 employees.