Serbia invites investors to propose terms to buy 3 heavily indebted, state-owned petrochemical plants

31-Mar-17

Serbia has invited investors to propose terms to buy three heavily indebted, state-owned petrochemical plants, part of a plan to boost growth and cut the national debt, as per Reuters. Expressions of interest have been invited for the privatisation of chemicals group MSK Kikinda, petrochemicals producer HIP Petrohemija and chemical fertiliser producer HIP Azotara Pancevo, as per SeeNews. In three separate invitations, the Economy Ministry said it wanted offers for the HIP-Petrohemija which produces various plastic compounds, the fertilizers maker HIP-Azotara and the MSK Kikinda, a producer of methanol and acetic acid.
Under the terms of a 1.2 billion euro loan-deal with the International Monetary Fund which expires next year, Serbia must sell big state-run firms, including the three petrochemical plants and the RTB Bor copper mine and smelter.

Potential investors will be able to submit their letters of interest to the Economy Ministry by May 3, the government said in a statement. In the following days, the three companies are expected to provide information about the fair market value of their capital, assets and liabilities as of December 31, 2016, the government added.After analysing the asset value of the three companies, their strategic importance for the country and the content of the submitted letters of interest, the economy ministry will pick the best privatisation model.