Three bids for Galenika – Companies from India, Brazil and a British-Russian consortium competing for the purchase

Bids for the privatization of Galenika through a strategic partnership have been made by three bidders: Cadila Pharmaceuticals Limited form India, EMS S.A. from Brazil and the consortium Frontier Pharma Limited from Great Britain and LLC NPA Petrovax Pharm from Russia, the Ministry of Economy announced.

The opening of bids will be held on July 29, 2016, at the Ministry of Economy, at which time only the envelope containing information about the bidder will be opened and the submitted documentation rated and analyzed.

Bids for a strategic partnership will be ranked so that the bidder which offers the highest number of employments in Galenika will have the advantage, the announcement says.

The final ranking list will be adopted by the Government of the Republic of Serbia, which will pronounce the most favorable bidder. Negotiations with the first ranked bidder will last for no more than 90 days.

The privatization procedure for Galenika is being carried out through a model of strategic partnership through a capital increase in the minimum amount of EUR 7 million, by which the strategic partner acquires 25% of Galenika's share capital.

While the strategic partnership is in effect, which can't be longer than five years, the strategic partner will carry out the operational and financial restructuring of Galenika, by which, through the increase in the value of Galenika, a surplus amount will be created to be paid to the budget of the Republic of Serbia, which will remain the majority owner.

After the period of the strategic partnership is over and after the successful operational and financial restructuring of Galenika, a joint sale of the majority capital of Galenika will be organized with the aim of maximizing the privatization income of the Republic of Serbia, the announcement says.

The strategic partner obliges to provide at least five managers which will be put in charge of the operational management of Galenika in the said period. The managers must have at least ten years of experience, of which at least five in the leading positions in pharmaceutical companies and/or working on financial or operational restructuring.

In line with the Law on Privatization, the Republic of Serbia intends to support the restructuring of Galenika in the period of the strategic partnership through the debt-to-equity conversion and carrying out a social program and through active support by participating in the managing authorities.

Galenika a.d. Beograd

Ministarstvo privrede Republike Srbije

Galenika privatization

Cadila Pharmaceuticals Limited

EMS SA

Frontier Pharma Limited

LLC NPA Petrovax Pharm