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Home/News/Serbia cancels sale of Galenika as talks with British-Russian consortium fail

Serbia cancels sale of Galenika as talks with British-Russian consortium fail

Serbia’s government has cancelled a procedure for the privatisation of majority state-owned drug maker Galenika at the proposal of a commission that held negotiations with the only bidder, a British-Russian consortium, government documents showed.

“The privatisation process of Galenika via a strategic partnership model has been declared unsuccessful,” the government said in a document published this week.

The government was looking to find a strategic partner in Galenika by a launching a tender for a 25% stake in the company for a minimum of 7 million euro ($7.4 million).

The British-Russian consortium was the only bidder left in the race after the bids submitted by India’s Cadila Pharmaceutical and Brazil’s EMS SA were rejected over procedural flaws.

Negotiations with the consortium seem to have failed due to Galenika’s large debts, local media speculated on Friday.

This is not the first time a tender for the sale of Galenika has been aborted. Serbia’s economy ministry is expected to prepare a new model for the company’s sale soon.

The Serbian state controls 70% of Galenika directly and a further 15% via state-owned investment fund Akcionarski Fond Beograd. The remainder is controlled by retail shareholders.