Chinese and Arabic companies interested in privatization of PKB

A great interest has been shown for the privatization the Agricultural Corporation Belgrade, or PKB for short – the Ministry of Economy confirms.

The deadline for prospective investors submitted their privatization proposals has expired with numerous companies from Serbia and abroad sending their proposals. The Ministry says that they are also waiting for the proposals sent by regular mail to arrive in order to start the opening procedure.

To remind, prospective bidders had until 17th February to submit their letters of interest in acquiring a share in the corporation which should contain the basic information about the bidder, a statement confirming their interest, the proposed format of privatization, an investment programme, a general business plan, the number of employees etc.

The government will make a decision on how much of a share in PKB is willing to offer to prospective bidders, and under what terms and conditions. The media have speculated that companies like Al Dahra from the United Arab Emirates and Han Chang from China have expressed interest in acquiring a share in one of the biggest agricultural companies in Serbia. A consortium made of companies owned by Petar Matijevic and Miodrag Kostic dropped out of the race for PKB, admitting that they did not stand any chance in bidding against such big agricultural players like Al Dahra.

Last time, the Serbian government offered a 51% share in PKB at the price of 154 million EUR, but no bidders expressed their interest. In September last year, the Belgrade City Assembled transferred 99% of its shares to the Serbian government.

PKB is one of the biggest agricultural companies in Serbia. It owns 1,400 hectares of building land, and 5,200 hectares of arable land. PKB and its subsidiaries have around 2,000 employees.

(Vecernje Novosti, 19.02.2017)

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