Sale of Galenika pharmaceutical company

, News

In the event that the sale of Galenika fails, the state prepared the plan B for that Belgrade pharmaceutical company, according to Blic.

According to that plan, the state should write off Galenika’s debts in the amount of around EUR 130 million, while the factory would repay loans to banks until 2020.

It will be known in two days whether the state medicines factory will get the new owner, since on July 27 the deadline for the submission of tenders for sale of 25% of Galenika shares shall expire.

For coownership of Galenika with the state, four investors that bought tender documents are interested- Bulgarian manufacturers of medicines Sofarm, Kadil farm from India and two investment funds, British Frontier and Finish KJK capital.

According to Blic, management of Galenika and privatization advisor prepared back up option in order to reduce debts towards the state and the banks that amount around to EUR 200 million.

The intention is to write off debt of around EUR 130 million towards state companies like Srbijagas and EPS and debts towards the banks of around EUR 70 million Galenika would repay in the following five to seven years.

The management of Galenika should talk to the representatives of banks today about the possibility to approve grace period for repayment of accumulated debts, stated Blic.