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Serbia sells railway maintenance firm ZGOP to Kazakh investo - Serbia Business

Serbia sells railway maintenance firm ZGOP to Kazakh investo

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Serbia’s economy ministry said on Wednesday it sold its majority stake in railway construction and maintenance firm ZGOP to sector player Zhol Zhondeushi of Kazakhstan.

The Kazakh company will pay 3.633 million euro ($3.869 million) for the purchase of the Serbian state’s 90.64% shareholding in the capital of ZGOP, the economy ministry said in a statement.

The contract for the sale of the shareholding was signed by Serbian economy minister Goran Knezevic and the CEO of Zhol Zhondeushi, Khuram Muradov, on Wednesday, the ministry added.

Zhol Zhondeushi placed the sole bid in the tender for the sale of the majority stake, called by the Serbian government on September 2, 2016. The deal is subject to approval by the Serbian competition regulator.

In December, Serbian media reported that Zhol Zhondeushi plans to invest 9.6 million euro in Novi Sad-based ZGOP by 2019.

In September, ZGOP said it had 290 employees and outstanding debt of 953.1 million dinars ($8.19 million/7.69 million euro).

In September 2011, Serbia sold 69.96% of ZGOP to Bosnian diversified corporation Integral Inzenjering for 3.6 million euro, but after the company changed its owners on various occasions, the privatisation deal was cancelled in 2014.