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Post by radovic on Nov 13, 2007 11:35:22 GMT -5
Serbia Mulls Big Privatizations (06/11/2007)
Serbia should consider floating shares of big state-owned companies on local and international stock markets to secure more foreign investment and faster growth, Economy Minister Mladjan Dinkic said yesterday. Dinkic said his ministry was preparing the IPO proposal for the privatization of big state monopolies and expected the government to debate it later this week. «Floating shares of big public companies will provide us with between $6 billion and $8 billion of foreign direct investment (FDI) every year in the period between 2008 and 2010, as well as annual growth between 7 and 9 percent,» Dinkic told reporters. Serbia's economy, hard hit by sanctions and economic isolation in the 1990s, has been posting healthy growth since 2000 when the autocrat Slobodan Milosevic was ousted. In 2006, growth stood at 5.7 percent, down from 6.2 in 2005. The 2007 budget sees growth of 5.9 percent, but some government officials have said it could top 7 percent. Since 2002, when the privatization process started, more than 1,700 companies have been privatized with total revenues of -1.88 billion and pledged investment of -1.1 billion. More than 1,000 small and medium-sized companies are awaiting privatization along with big monopolies, including oil company NIS, power firm Elektroprivreda Srbije, national flag-carrier JAT and landline monopoly Telekom. «If our strategy is adopted by the government, the first company to offer shares on the Belgrade Stock Exchange in the second half of 2008 would be Telekom,» Dinkic said. «Later, the shares might be offered at a stock market abroad, most probably in London.» Dinkic said that 14 percent of Telekom's shares should be floated, while another 15 percent should be offered to Serbian citizens for free. The state would keep the remaining majority stake.
The country got a record $4 billion of FDI in 2006. Officials say that the 2007 haul is likely to be only $2.5 billion, due to a three-month political crisis early in the year, and continued investor insecurity over Serbia's hardline stance in talks on the future of the breakaway Kosovo province. Ever since it was formed in May after lengthy negotiations, the fragile coalition government has made slow progress on privatization due to differences among its component parties on how the sell-offs should be done.
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Post by radovic on Nov 13, 2007 11:41:23 GMT -5
these statistics are wrong. 2007 growth is 6-8%. 06 growth was not 5.7% but 6%.
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Post by radovic on Nov 27, 2007 10:57:07 GMT -5
Dinkiæ offers another 2.5% of free shares
EMonline
Dinkiæ offered 2.5% of shares to public company employees while the other 15% would be allocated to Serbian citizens of age
He explained how employed citizens who do not want shares could chose cash bonus whose amount is specified for each company and for EPS amounts to EUR 220mn, NIS 100mn, Telekom 160mn, Galenik 17mn, JAT Airways 11mn and Belgrade Airport EUR 4mn.
The latest proposal by Serbian Minister of Economy and Regional Development, Mlaðan Dinkiæ, suggests that 17.5% of public companies’ shares be allocated free of charge.
Dinkiæ offered 2.5% of shares to public company employees while the other 15% would be allocated to Serbian citizens of age. In case employees do not want shares, they can choose cash bonus specified for each company.
According to Minister of Economy, bonus is different for each company and for EPS amounts to EUR 220mn, NIS 100mn, Telekom 160mn, Galenik 17mn, JAT Airways 11mn and Belgrade Airport EUR 4mn. (B92)
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Post by radovic on Nov 28, 2007 16:15:13 GMT -5
Serbia drafts 3-year privatisation planReuters Monday November 26 2007 By Gordana Filipovic BELGRADE, Nov 26 (Reuters) - Serbia has drafted a three-year timetable for the privatisation of its six most valuable public companies, hoping to attract billions of dollars in new investment and boost future economic growth. The draft, seen by Reuters, sets out new plans for the oil, power and landline monopolies, Serbia's flag-carrier JAT, Belgrade airport and Galenika pharmaceuticals firm. The government is expected to discuss and approve it by mid-December. It believes the privatisation of six monopolies by 2010 can secure between $6.0 and $8.0 billion in foreign investment and strong economic growth of 7-9 percent a year. Speeding up the privatisation of inefficient public monopolies is high on the list reforms recommended by the International Monetary Fund and other multilateral lenders as a way to boosting Serbia's competitiveness. According to the draft, a tender for the NIS oil monopoly would be called by March next year, and the transaction completed in a public auction by end-2008. "The Ministry of Economy proposes a model in which we immediately sell a majority stake to a strategic investor, with the government keeping a golden share," the document read. The auction price for NIS should be set high and the buyer will remain obliged to add up to $300 million in investments. Serbia initially planned to sell a 25 percent stake in NIS for around $300 million, giving the buyer a chance to boost its stake to 37.5 percent with an extra investment of $250 million. A similar timetable was proposed for flag carrier JAT Airways. Initial public offerings (IPOs) were planned for four other four companies: a 14 percent stake in landline monopoly Telekom Srbija -- already 20-percent owned by Greece's OTE -- would be sold by end 2008. IPOs offering 15 percent stakes in three other firms would come later -- in the second quarter of 2009 for Belgrade airport, and in the third quarter of 2009 for Galenika drugs maker, which controls a third of the Serbian market. Power monopoly EPS would be last, with an IPO launched probably in 2010. As part of the IPO plans, the ministry wants to give shares free of charge to around 4 million Serbian citizens. Trade unions oppose the plan, saying only workers in those six state companies should be the ones to get free shares.
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Post by superman on Nov 28, 2007 16:21:42 GMT -5
sell everything, after that you'll do better, see Romania's case...haha now we don't have anything..but it's better
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Post by radovic on Nov 28, 2007 16:28:00 GMT -5
sell everything, after that you'll do better, see Romania's case...haha now we don't have anything..but it's better Sell everything. Not smart. I'd prefer most things be sold but not all. If Serbia was to sell everything then I'd want the Serbian state to keep a golden share in all important businesses (NIS, EPS, all utilities, etc...) to veto any decision that is against the interests of the Serbian state.
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Post by superman on Nov 29, 2007 0:50:30 GMT -5
NIS will be ours, Rompetrol will pay it.
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Post by radovic on Nov 29, 2007 12:11:45 GMT -5
NIS will be ours, Rompetrol will pay it. No it wont. You willget a minority stake. Plus, if Serbia face to sell majority stakes in such businesses it would have agolden share.
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Post by superman on Nov 29, 2007 13:14:26 GMT -5
once you sell it you can't control it..Rompetrol will buy it, I spoke with them
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Post by radovic on Nov 29, 2007 13:19:03 GMT -5
once you sell it you can't control it..Rompetrol will buy it, I spoke with them It's a minority share. That mean's government will have say in operations. furthermore, if we were to sell more Serbia could still limit how much a foreigner could control in NIS through the law. Finally, a golden share would invalidate any decisions any owner had because the government would have the right to veto it if it felt that it was against state interest. furthermore. the process has not begun, the terms for bidders may change. not only that I suspect that Gazprom has more money to throw at NIS then Rompetrol does. Not only that Gazprom probably can use market fo,rces to eventually sell Rompetrol to sell it to Gazprom. I'd prefer Rompetrol buy it since Romania doesn't use oil for political reasons.
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Post by superman on Nov 29, 2007 14:02:18 GMT -5
It's true, we don't use oil pressure for politics, we will use instead to convince you to join EU.
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Post by radovic on Nov 29, 2007 14:05:49 GMT -5
It's true, we don't use oil pressure for politics, we will use instead to convince you to join EU. EU never, Switzerland forever.
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Post by superman on Nov 29, 2007 14:06:31 GMT -5
Still you will join by 2017.
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Post by radovic on Nov 29, 2007 14:09:34 GMT -5
Still you will join by 2017. Actually. The more years that go by fewer and fewer people are supporting the EU. If Serbia does not join by 2012, I believe that support for Eu membership will be around 50% if not slightly lower. If EU supports Kosovo independence, we will never join the EU. like I said. EU never, switzerland forever.
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Post by superman on Nov 29, 2007 15:36:24 GMT -5
Romania can block any decision on the EU level. But we can't stop individual decisions...I hope EU member states will not recognize Kosovo..
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Post by radovic on Dec 7, 2007 11:58:15 GMT -5
Free share distribution proposal for urgent adoption 7 December 2007 | 09:59 | Source: B92 BELGRADE -- The government has adopted a draft law on the free share distribution.
Mlaðan Dinkiæ, Božidar Ðeliæ (FoNet, archive)
The proposal, under which around 4 million citizens would receive EUR 1000 worth of free shares is due for urgent adoption in parliament by the end of the year.
The Economy Ministry said that the proposed model for private enterprise privatization would “encourage“ reforms in Serbia and allow USD 6mn worth of foreign investment to come to Serbia on a yearly basis.
All citizens, who in December of this year are over 18 years of age and who have not thus far taken part in the privatizations, will have the right to the free shares, regardless of their age or employment history.
Verification procedures will take six months in 2008, and citizens will have a right to access them within six months of the shares’ market value being established or in 2010, at the very latest.
Deputy Prime Minister Božidar Ðeliæ said that, this way, all citizens would have the opportunity to take part in the privatization process.
“It’s legal, and at the same time, in the sense of inter-generational solidarity, it shows that what previous generations created can now be reaped and used as a basis for the future development of our country,“ said Ðeliæ.
The draft law pertains to the distribution of shares from the Serbian Oil Industry (NIS), Elektroprivreda Srbije, Telekom, Nikola Tesla Airport, Jat Airways and pharmaceutical company, Galenika.
All of the companies’ employees and retired staff will, under the law, receive EUR 200 per year worked there, on the basis of the projected value of each company before privatization or a one-off payment of EUR 4000, said Economy Minister Mlaðan Dinkiæ.
“No other country has yet adopted a system like this. Some initially distributed shares from worthless companies - that was called voucher privatization. Nobody has offered their citizens free shares in strong, public enterprises,“ said Dinkiæ.
The economy minister said that all the trade unions, except NIS’s, had approved the free share distribution model.
He said that that if NIS employees decided to go on strike over the proposed model, it would be a strike of greed, not of social rights.
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