Privatization of Galenika stopped

The Serbian government has decided to cancel the privatization of Galenika pharmaceuticals, at the request of a committee which negotiated the sale with the Belgrade-based Galenika’s only bidder.

The model for the Galenika privatization was a strategic partnership, i.e. selling a 25 percent stake at the minimum price of EUR 7 million.

A British-Russian consortium, Frontier Pharma – Petrovax was the sole bidder, and the deal fell through over the company’s EUR 70 million debt to banks.

The British – Russian consortium of companies Frontier and Petrovax was actually the only bidder to have submitted a valid offer following the last public call for strategic partnership with Galenika. The bidders from India and Brazil failed to meet the main requirements stipulated in the Public Call – the Commission for the Implementation of the Strategic Partnership has ascertained.

The British – Russian consortium offered at least 7 million EUR for a 25% stake in the Serbian pharmaceutical company. Just like the failed bidders, the consortium planned to halve the current number of employees of 1,400.

The Belgrade-based pharmaceutical company owes another EUR160 million to the state, and the government has recommended that creditors don’t block the factory’s bank account, that is, collect their claims, until a final agreement is reached with commercial creditors, but no later than March 31, 2017.

The Ministry of the Economy has prepared a new format for the privatization of Galenika, which is expected to be released soon.

(Beta, 13.03.2017)

A small favour

Since 2013, Serbian Monitor has been offering to its readers carefully selected news about the Republic of Serbia, as a daily commitment stemming from the genuine desire to offer undistorted information about a country that is too often a victim of prejudice and superficiality. From November 2016, this service is available in English and Italian with a growing number of original articles with a goal of providing a complete picture of this Balkan country's economy, politics, culture and society. Our archive is completely free of charge, available to anyone who wants to get to know the country, to study its specific aspects, or to be constantly updated about it. This project will only be able to continue with the help of readers on whom we are calling to provide a small financial support so that we can continue supplying an increasingly expanding pool of information and original contributions. If you appreciate our work, please click on the button below.

This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published.

scroll to top