The Ministry of Economy has called a tender to sell a 93.7 pct owned stake in the Belgrade-based Galenika pharmaceuticals, with one euro as the starting price.

The buyer will have to increase Galenika’s base capital by paying EUR 25 million, to be used to finance the company’s debt.

The deadline to submit the bids in October 2, while they will be opened on October 4.
Those participating in the privatization must come from the same industry and have an annual income of over EUR 300 million in the last business year.

The appraised value of the capital offered for sale is negative and totals EUR 152 million.
Galenika owes more than EUR 71 million to banks, who have agreed to a discount and will accept the EUR 25 million payment from the future owner.

Beta is reporting on Friday that “potential investors think the optimal number of workers in Galenika would be from 700 to 900, instead of the current 1,400.”

A previous attempt to privatize Galenika fell through earlier this year, as there was no agreement with the potential strategic partner – the Russian-British consortium Frontier Pharma-Petrovax – on the issue of the Serbian company’s debt to commercial banks.

According to media reports, this consortium is once again among those interested in buying Galenika, along with China’s Sinopharm, Amicus, regstered in Switzerland, Serbia-based Hemofarm, owned by Germany’s Stada, and Brazil’s EMS.