Galenika bids opened – Inspection of the documentation and ranking of strategic partners to follow

The envelopes containing the documentation of three potential strategic partners of Galenika were opened on July 29 at the Ministry of Economy. The bids were submitted by companies from India and Brazil and by a British-Russian consortium. After the documentation is determined to be valid, the commission will select the best bidder. Negotiations with the selected bidder may last no longer than 90 days.

The three interested investors are Cadila Pharmaceuticals Limited from India, EMS S.A. from Brazil and the consortium of Frontier Pharma Limited from Great Britain i LLC NPA Petrovax Pharm from Russia.

What follows is the analysis of the documentation in order to determine its validity, and the next stop is the opening of financial bids.

The final ranking list will be made by the commission, and the companies offering the strategic partnership will be ranked by the number of employments they offer in Galenika.

– The ranking procedure also takes into consideration the offered amount of capital increase of Galenika for 25% of the capital and the offered amount to be paid to the state budget in the sale of the capital following the expiration of the strategic partnership – the Ministry of Economy says.

The final list is to be adopted by the Government of Serbia, which will also pronounce the best bidder.

The Galenika privatization procedure is being carried out through a model of strategic partnership through a capital increase in the amount of at least EUR 7 million, by which the strategic partner acquires 25% of the shares capital. The strategic partnership may last up to five years, and the partner is expected to carry out the operational and financial restructuring of Galenika, by which, through the increase of the value of the company, a surplus amount will be created to be paid to the budget of the state, which remains the majority owner.

Following the expiration of the strategic partnership and the successful operational and financial restructuring of Galenika, a joint sale of the majority capital of the pharmaceutical company will be organized.

Galenika a.d. Beograd

Ministarstvo privrede Republike Srbije

Galenika privatization

Galenika capital increase

strategic partner for Galenika

Cadila Pharmaceuticals Limited

EMS S A

Frontier Pharma Limited

LLC NPA Petrovax Pharm