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Serbia may seek at least 200 mln eur for drugmaker-report

Published 08/24/2009, 11:31 AM
Updated 08/24/2009, 11:33 AM

BELGRADE, Aug 24 (Reuters) - The Serbian government is slated to discuss the sale of a 70 percent stake in state-run Galenika pharmaceuticals within two weeks, the Privatization Agency said on Monday, with media reporting a minimum asking price of 200 million euros ($286.1 million).

Talks over the sale of Galenika, which controls about 13 percent of the sector's domestic market in earnings and produces about 90 percent of all medications, could start within two weeks, said Vladislav Cvetkovic, acting director of the Privatization Agency.

"Bidders might be invited in September," Cvetkovic said in a statement carried by Tanjug news agency.

Local media reported on Monday that the minimum asking price for the stake would be 200 million euros, in line with recommendations made by privatization advisors Rothschild and Citadel investment banks.

According to official data, in 2008 Galenika posted net profit of 601 million dinars ($9.2 million), down from 950 million dinars in 2007.

The sale of Galenika was part of a 2008 government plan to sell major state-run enterprises, including electro power utility Elektroprivreda Srbije (EPS), JAT Airways flag carrier and state-run Telekom Srbije telephony provider and distribute free shares to about five million people.

The plan was put on hold after the outbreak of the global financial downturn as investors pulled out of emerging markets. ($1=.6990 Euro) (Reporting by Aleksandar Vasovic; Editing by Adam Tanner and Jon Loades-Carter)

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