Serbia will postpone all major privatizations, including the sale of a stake in NIS oil monopoly after the country’s early general elections in December, according to Reuters citing comments by the Serbian Finance Minister Mladjac Dinkic.
Serbia called for expression of interest in NIS 10 days ago. The 25% stake was due to be sold this month.
“We expect the tender for NIS to be called in the first quarter of 2007,” Dincik said. “Everyone in the European Union the World Bank and the International Monetary Fund supports this decision,” he added.
The government expects to get at least $300 million for the 25% stake, based on NIS’ $1.2 billion nominal value. The buyer would get another 12.5% stake through a $250 million capital increase and would have to reinvest a further $250 million from NIS profits. Once the first stage of privatization is over, the state and the buyer would each hold a 37.5% stake. The buyer would get management control and Serbia would keep a right to veto decisions such as the sale of NIS to third parties.
Three years later NIS would launch an initial public offering, putting on sale 15% of its total capital.
Following the IPO, the initial buyer would have the chance to boost its holding to 49%, depending on the company’s third-year performance.
By the end of July, privatization advisers Merrill Lynch and Raiffeisen Investment had held meetings with companies including Hellenic Petroleum, OMV, MOL, PKN Orlen and Lukoil.