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The Government of the Republic of Serbia

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Tender sales of Zastava, Genex to be launched on December 27

Belgrade, 24 December 2007

Serbian Minister of Economy and Regional Development Mladjan Dinkic announced that tender sales of car maker Zastava Automobili and Zastava Specijalna Vozila and the company Genex will be published on December 29.

Mladjan Dinkic

Dinkic told a press conference that the application deadline for showing interest in Zastava’s plants is three months while interested buyers will have to submit offers by May 2008.

According to him, the offers for Genex will be submitted until March 24, 2008, whereas the auction bidding is scheduled for March 31, 2008.

Genex’s properties in New Belgrade’s block 20, including the Continental hotel, and hotels on Kopaonik Mountain will go private first, Dinkic explained and added that only renowned companies guaranteeing for takeover of employees and four star hotels on Kopaonik will be able to purchase.

Dinkic said that three offers arrived for Belgrade’s IMT and they will be opened on January 15 next year.

Prva Petoletka from Trstenik is the largest socially-owned company that awaits privatisation, Dinkic said noting that after unsuccessful tenders this company will be sold in parts.

Privatisation of public companies is being prepared, Dinkic stressed and noted that report of privatisation advisor for Jat Airways was completed. Jat Airways will be put on sale without debts, which will be taken over by the state in exchange for ownership share; in that way, Jat Airways assets will be enlarged from €15 million to €120 million.

Dinkic stressed that the government is about to decide on the privatisation strategy of NIS and expressed his opinion that it should be majority privatised in a tender and exempted from Serbian-Russian oil and gas arrangement.

Financial advisor for initial offer of shares of Telekom is also expected to be engaged, he said and noted that the shares of this company should appear on the Belgrade Stock Exchange in late 2008.

The tender for state’s private partner in the project of tourism development on Stara Planina will be published in the next two months, Dinkic announced noting that this calls for necessary investments of between €200 million and €250 million.

Dinkic said that the registration of citizens for getting the right to free shares could start after the adoption of the law regulating this right.

He also presented Ministry’s work in 2007 and said that 750 socially-owned companies are yet to be privatised, 97 of which will be sold in a tender.

State Secretary Luka Andric specified that 283 companies were sold in auctions this year for a total value of €360 million, while 13 companies were sold in tenders for €62 million and agreed investments worth €53 million.

The Privatisation Agency sold 61 companies in bankruptcy and parts of property of 94 companies, collecting total revenues in the amount of €450 million, said Andric.

He also added that the buyer of department store chain RKB, Verano Motors, pays the price of €360 million this week.