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NIS privatisation through two phases
Belgrade,
14 July 2006
Serbian Minister of Economy Predrag Bubalo said today that according to the strategy for the privatisation of the Serbian Oil Industry (NIS) the privatisation process will be conducted in two phases.
Predrag Bubalo
Author:
FoNet
Speaking at a round table on NIS privatisation, Bubalo explained that the first phase envisages the sale of the minority shareholding to a strategic partner who will take upon the obligation of recapitalisation. In the second phase the Serbian government is planning to sell its majority shareholding to the strategic partner, thus allowing the partner to run the company’s management.
According to Bubalo, during the first phase, which will last three years, the strategic partner will be able to gain a maximum of 49% of the total capital of NIS.
In the second phase the government plans to sell majority shareholdings which will give the strategic partner management control in the company, said the Minister. He added that in that phase the state will not be dominant in management, but will be able to protect its rights and interests through the “golden share” or right of veto.
Bubalo expressed his expectation that at its upcoming session the government will adopt the privatisation strategy for NIS, which was proposed by privatisation advisor for NIS the Consortium Merrill Lynch-Raiffeisen Investment.
The Serbian government’s aim in privatisation of NIS is to create a competitive and profitable national oil company, capable of achieving success in a liberalised regional and European market, and the privatisation process will also contribute to further liberalisation of the domestic oil and oil derivatives market, said the Minister.
He said that several regional companies have shown interest in buying NIS, such as Austria’s “OMV”, Hungary’s “MOL”, Greek “Hellenic Petroleum”, Russia’s “Lukoil” and Slovenia’s “Petrol”, and talks have been conducted with them.
According to Bubalo, it is natural that at the very beginning of the privatisation process regional leaders show interest. He added that the government would prefer to see more interest among international companies.
Part of the proceeds from the privatisation of NIS will go to the budget, and part will be used for modernisation of the company, said Bubalo.
According to Bubalo, during the first phase, which will last three years, the strategic partner will be able to gain a maximum of 49% of the total capital of NIS.
In the second phase the government plans to sell majority shareholdings which will give the strategic partner management control in the company, said the Minister. He added that in that phase the state will not be dominant in management, but will be able to protect its rights and interests through the “golden share” or right of veto.
Bubalo expressed his expectation that at its upcoming session the government will adopt the privatisation strategy for NIS, which was proposed by privatisation advisor for NIS the Consortium Merrill Lynch-Raiffeisen Investment.
The Serbian government’s aim in privatisation of NIS is to create a competitive and profitable national oil company, capable of achieving success in a liberalised regional and European market, and the privatisation process will also contribute to further liberalisation of the domestic oil and oil derivatives market, said the Minister.
He said that several regional companies have shown interest in buying NIS, such as Austria’s “OMV”, Hungary’s “MOL”, Greek “Hellenic Petroleum”, Russia’s “Lukoil” and Slovenia’s “Petrol”, and talks have been conducted with them.
According to Bubalo, it is natural that at the very beginning of the privatisation process regional leaders show interest. He added that the government would prefer to see more interest among international companies.
Part of the proceeds from the privatisation of NIS will go to the budget, and part will be used for modernisation of the company, said Bubalo.
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