The state quickly re-offered the company Ivan Milutinović PIM for sale, just one month and five days after the first unsuccessful auction. As usual, the price was halved, and this time the buyer was a consortium of Serbian construction companies – Concord West and Millennium Team.
The company, which specializes in waterways, is majority-owned by the Republic of Serbia and its institutions. The Ministry of Economy initially offered 65 percent of the company’s shares for privatization. The consortium bought these shares for €10,240,666, which was €545 more than the original asking price. However, this price was still half of the company’s estimated value.
How much is PIM worth?
When Ivan Milutinović PIM was first offered for sale in September 2023, its full value was estimated at €20.48 million. The auction at the time expired without a sale, and by December 4, the Ministry of Economy re-announced the offer. A new valuation of the company was conducted in 2023, estimating its fair capital value, adjusted for liabilities, at €31.49 million. The 65 percent of the shares for sale, therefore, came at a lower price.
Who owns the shares?
The Ministry of Economy’s package included 59.1 percent of the shares, which are held by the state. Additionally, 3.47 percent is owned by the Republic Fund for Pension and Disability Insurance, and 2.4 percent by the Development Fund of the Republic of Serbia. However, the City of Belgrade and the Republic Fund for Health Insurance did not participate in this sale.
Other stakeholders include the company Nicco with 5.1 percent, DDOR Novi Sad with 1.98 percent, Contex Energy with 1.77 percent, GP Novogradnja (in bankruptcy) with 1.59 percent, and Goša-Trade with 1.4 percent.
Profitable year
The most recent financial report for Ivan Milutinović PIM, for the year 2023, shows total income of 1.75 billion dinars, up from 1.6 billion dinars in 2022. The company ended the year with a net profit of nearly 24 million dinars, down from 50 million dinars the previous year. According to the notes in the financial report, the company’s liabilities amount to 6.5 million euros, which led to a reduction in its valuation.
History and operations of PIM
Founded in 1952, Ivan Milutinović PIM has become a leader in waterway construction. The company owns two subsidiaries: PIM Hidroinženjering and PIM Standard. While PIM Hidroinženjering focuses on the same activities as the parent company, PIM Standard is involved in the catering industry.
PIM’s notable projects include the construction of embankments for the Belgrade-Bar railway, the expansion of the Port of Bar, building piers in several locations including Apatin, Vukovar, Belgrade, and Pančevo, as well as the development of the Danube-Tisa-Danube canal network. Other projects include the reconstruction of bridges, the Porto Montenegro marina in Tivat, and various sewage and wastewater treatment plants.
Who were the buyers?
According to the conditions of the competition, the buyers needed to be construction companies with an annual income of at least six billion dinars in 2023. There are at least 40 companies in Serbia that meet these criteria, many of which are large foreign construction firms involved in major infrastructure projects in the country.
Ivan Milutinović PIM will now become part of the large Millennium Team group, which has 15 affiliated companies, including Goša Institute, Mostogradnja, and the Jaroslav Černi Institute for Water Management, which have already been acquired by the group. Concord West, the other member of the consortium, is a parent company with eight subsidiaries, associates, and joint ventures.
The Ministry of Economy officially announced the consortium as the buyer on January 30, and the contract was signed on March 20.
