The Ministry of Economy has announced the failure of the public tender for purchasing shares in the Yugoslav River Shipping Company (JRB) due to a lack of interested buyers. According to the ministry, no applications were received by the deadline, despite the fact that the initial price was set at seven million euros less than in the canceled July tender.
The previous call for privatization, canceled after just 24 hours, had set the initial price at 29.2 million euros. The revised tender offered JRB’s capital at 21.82 million euros, based on the company’s estimated value as of December 31, 2023. Potential buyers were invited to submit bids for a package of 1,804,179 shares, representing 99.98% of JRB’s total capital.
The deadline for applications was September 5, 2024. On that date, the Commission for the Implementation of the Procedure confirmed that no bids were received, leading to the announcement of the procedure’s failure.
Earlier, on July 30, a notice on the Public Procurement Portal indicated that Elektroprivreda Srbije (EPS) had halted further activities in a public procurement procedure involving JRB. This decision came shortly after JRB was awarded a state contract worth 28.8 million euros for coal handling and transport, which was nearly equivalent to JRB’s estimated value.
The initial valuation and starting price of JRB were adjusted after receiving notifications from the Republic Directorate for Property and JRB regarding certain parcels being part of a significant national project. As a result, on August 2, 2024, the Ministry of Economy canceled the public invitation to ensure the correct privatization procedure and to protect public interest.
A new privatization call was issued on August 13, with the deadline for potential buyers set for September 5, but this attempt also failed.
For a legal entity to participate in JRB’s privatization, it needed to meet the following requirements:
- Achieve business income of at least two billion dinars in 2023.
- Achieve business and net profit in 2023.
- Own at least 15 registered cargo ships in Serbia with a “Certificate of Seaworthiness” issued before December 31, 2023.
In 2023, JRB reported total income of 2.98 billion dinars (25.42 million euros), a net profit of 5.34 million euros, and an EBITDA of 6.28 million euros, according to credit rating company CompanyWall.
