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A MEETING HELD IN THE MINISTRY OF ECONOMY AND REGIONAL DEVELOPMENT PERTAINING TO RTB ‘’BOR’’ PRIVATIZATION

A NEW TENDER FOR RTB ‘’BOR’’




Belgrade, September 6, 2007
A meeting was held in the Ministry of Economy and Regional Development on August 29, 2007, at which, besides the Minister Mlađan Dinkic, the following people were present: representatives of the representative unions of RTB, RTB Management, representatives of consulting firms, representatives of the Privatization Agency for RTB and RTB Government Committee. The most important information from the meeting is as follows: new tenders for the sale of RTB will be called for on Friday, August 31, 2007, privatization model is retained by the sale of 100% capital assets, the existing privatization strategy is retained except in the part referring to number of workers that the future owner should take over (4.200), but the obligation has been imposed to take over all employees (about 4.690) which is the level of negotiations reached with the first ranked at the previous tender, term for preparing final tender documentation is September 15 and the deadline for the documentation purchase is October 5, 2007. The tendering will be till October 31, 2007 and ranking list publishing till November 26, 2007.

The tender conditions are: 340 million dollars for the purchase of property, minimum of 180 million dollars for the investments and social program signed with the first ranked at the previous tender as an initial document for new negotiations. The future owner is also obliged to build a new Smelting Works in the shortest possible term and to invest in the environmental protection. The deposit for participation in this tender has been increased from the previous 3 million dollars to 10 million dollars. If a higher selling price is reached compared to the amount of financial commitments, the balance will be allocated to distribution of some kind of shares to workers.

The ‘’Nezavisnost’’ Union requested from Minister Dinkic that employee earnings should be increased prior to privatization, for the amount of living costs increase, and the Minister promised he would talk to the Minister of Finance about granting additional funds to RTB for this purpose and that he would inform us of this timely. We also requested from Minister Dinkic that, if for any reason this tender failed, a portion of funds from the deposit should be granted to RTB, and the Minister agreed in principle, with a remark that he was convinced that this tender would be successful, that RTB ‘’Bor’’ would have its title holder very soon and that it would be a profitable company after privatization.

 
     
 
 
 
 
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