Galenika is going to be offered for sale at the initial price of 1 EUR, but the future owner will also have to pay 25 million EUR on the account of the company’s debt towards various banks. This is envisaged by a public call for the sale of Galenika.
The reason why the sales price is so low lies in the fact that the company’s negative working capital currently stands at 152 million EUR, i.e. Galenika’s debts and liabilities outweigh the worth of its assets. Such companies usually declare bankruptcy, unless the state steps in with subsidies, or annulling the liabilities that a company has.
According to the official information, Galenika owes a total of 71 million EUR to banks. However, the future owner of the biggest Serbian pharmaceutical company will be given an opportunity to settle the entire debt through a single payment of the aforementioned 25 million EUR. Also, the future owner has to have annual turnover of at least 300 million EUR.
Head of Galenika’s trade union, Zoran Pantelic says that the company has a good reputation and that it enjoys consumer trust. If the new owner adheres to the sales contract, and if they are buying Galenika with an intent to invest in it, than there is a good chance that the company will regain its regional leadership status – Pantelic adds.
He also hopes that the tender will be public and transparent and that the new owner will be the one who offers the best conditions.
The last attempt of selling a 25% stake in the company failed, and Galenika has been undergoing the privatization process for the past ten years. On 11th July this year, the Serbian government decided to sell Galenika’s capital, after converting the company’s debt into capital.
(Vecernje Novosti, 31.08.2017)
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