Agency for privatization has extended deadline until May,15th, to Filip Zepter and his partners from Slovenia for submitting bank guaranty for purchase of Belgrade based “Industry of machines and tractors”.
If in the next 6 days they don’t submit 12 mil EUR guaranty, the state might break off this contract and move on to negotiations with the second-placed bidder from the tender. It is a consortium of two companies: “Neverfiled Limited” registered in Virgin Islands and Polish “Pol-Mot Wafarma”.
Agency has signed the contract on April, 10th, 2008, with the first-placed consortium “Home Art & Sales” (behind which stands Filip Zepter) and Slovenian “Strojna industrija”.
Their offer was considered the best one, as they offered 121,11 mil EUR for 94,5% of total IMT capital, with obligation to invest another 10,27 mil EUR.
Exactly because of this amount, the Agency requested so-called bank guaranty. And it is 10% of the total purchase price. This guaranty is for the seller, Agency for privatization, some sort of security that the buyer is serious and that he plans to fulfill on time all of his agreed obligations. But, it is not so rare that the buyer asks for an extension of the deadline in order to get the guaranty, and usually the Agency’s rule is to meet his request.
The procedure is clear, says Nebojsa Ciric, Assistant Minister of economy and President of the tender commission for IMT, In case the first-ranged bidder fails to deliver the bank guaranty in determined deadline, tender commission will decide about their further steps based on opinion of financial and legal advisors and of the Agency for privatization.
There are small chances that Zepter would get any additional deadline. In case the contract would be cancelled, we would automatically start negotiating with the second-ranged consortium which is ready to pay for IMT 109,3 mil EUR and also to invest another 13 mil EUR, it was said in the Agency.