An attempt at forging a strategic partnership and selling a 25% stake in the biggest Serbian pharmaceutical company, Galenika ended in failure in February.
The new tender for the sale of a stake in Galenika will be launched by 1st September the latest, and, this time around, the state is selling a majority share.
The destiny of Galenika rests on three figures – the courts are deciding on what to do with 120 million EUR worth of company’s claims (on the account of delivered but not paid for products), 110 million EUR, which is how much Galenika owns to public enterprises, and over 70 million, which is the company’s debt towards various banks.
“The banks agree for the total debt of 71.74 million EUR to be bought at one-off payment of 25 million EUR on condition that the company is privatized and that the money comes from the amount that the state will get when it sells Galenika. The debt towards the two biggest creditors – Srbijagas and the Public Debt Administration – is currently being converted. After all of this is done, the state is contemplating offering to sell 90% of Galenika”, the Ministry of Finance says.
Economy experts, Danilo Sukovic says that the government’s new decision to sell a majority stake in Galenika is much more prudent than the earlier one.
“When a proprietor owns a majority stake, he decides on his own capital and is much more interested in making the company more efficient thus securing its success in the future”, Sukovic explains.
Last year, Galenika did record a slight profit. The company currently has 1,400 employees.
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