13.06.2007. - Press Release: 646 million EURO in the ESCROW account

The Escrow agent, Nova Ljubljanska Banka, informed today the Directorate for Privatization that the total amount of the selling price for 65% of the state-owned capital in "Telekom Srpske" a.d. Banja Luka, which is 646 million euros, had been received in the Escrow account.

According to the Agreement on the Closing Date, signed earlier by the Director of the Directorate for Privatization, Vladimir Mackic and General Manager of "Telekom Srbija", Drasko Petrovic, the obligation of the Buyer was to pay the full amount of the selling price into the ESCROW account by 13 June. This Agreement stipulated 18 June as the Closing Date of the transaction, in accordance with the Contract on Sale of the state-owned capital in "Telekom Srpske" a.d. Banja Luka.

On the Closing Date, 18 June, the Buyer "Telekom Srbija" will submit to the Seller, the Directorate for Privatization, Performance Bond for the amount of 50 million euros, which is the stipulated investment obligation for the First Year of the Business Plan. On the other hand, the Seller, Directorate for Privatization, is obliged to deliver to the Buyer the Ownership Certificate for shares of "Telecom Srpske" from the RS Central Registry of Securities, as well as certain statements and warranties which cover the period from 19 January, the Date of Signing of the Sales Contract, until the Closing Date.

Concurrently with delivery of the Shares Ownership Certificate to "Telekom Srbija", the Buyer and the Seller will sign the Announcement of Transfer which serves as the order to the Escrow agent to carry out the transfer of the selling price amounting to 646 million euros into the Seller's account.

08.06.2007. - Press Release: Telekom – Agreement on the Closing Date

Director of the Directorate for Privatization, Vladimir Mackic and General Manager of "Telekom Srbija", Drasko Petrovic, signed today the Agreement on the Closing Date, defining 18 June as the Closing Date of the transaction in accordance with the Contract on Sale of the state-owned capital in "Telekom Srpske" a.d. Banja Luka.

As stipulated by the Agreement, the Buyer "Telekom Srbija" is obliged to pay the total amount of the selling price, 646 million euros, into the ESCROW account, no later than 13 June 2007.

On the Closing Date, 18 June, the buyer "Telekom Srbija" will submit to the Seller, the Directorate for Privatization, the Performance Bond and make the payment in the amount of 50 million euros, which is the stipulated investment obligation for the First Year of the Business Plan. On the other hand, Seller is obliged to deliver to the Buyer the Certificate of Correctness and Truthfulness of the Statements and Warranties of the Seller, as well as the Certificate on Non-existence of the Significant Adverse Changes in the Business Operations of the Company in the period between the signing of the contract and the Closing Date. Also, the Seller, the Directorate for Privatization will deliver to the Buyer the Ownership Certificate for shares of "Telecom Srpske" from the RS Central Registry of Securities.

Concurrently with delivery of the Shares Ownership Certificate to "Telekom Srbija", the Buyer and the Seller will sign the Announcement of Transfer which serves as the order to the Escrow agent to carry out the transfer of the selling price amounting to 646 million euros into the Seller's account.

24.01.2007. - State-owned capital in "Industrija alata"/Tools Industry Trebinje privatized

The Contract on Sale of the State-Owned Capital in the enterprises of Poslovni sistem "Industrija alata" Trebinje (Business Group "Tools Industry" Trebinje) has been signed in the Directorate for Privatization. The buyer of total state-owned capital is Concern Swisslion-Takovo, Limited Liability Company, Food Industry Belgrade.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the President of the Management Board of the Concern Swisslion-Takovo, Mr. Milan Nikolin. The selling price for the object of sale is 1,500,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to the total of 17,113,513.00 KM, according to the following scheme:

• in the First Year of the Investment Period at least 9,251,077.00 KM
• in the Second Year of the Investment Period at least 4,840,680.00 KM
• in the Third Year of the Investment Period at least 3,021,759.00 KM

The buyer is also committed to employing, on average, at least 1,192 employees on a permanent, full-time basis in the First Year of the Employment Period. Upon expiry of the five year Employment Period, the number of employees should be increased to at least 1,340. In the procedure of internal organizational restructuring, the Buyer is committed to establishing and implementing a programme of social care for employees in accordance with positive regulations.

The buyer is also committed to keeping the core activity of the Enterprise for 3 years after the execution of the privatization.

The conclusion of the Contract, as highlighted by the President of the Managemnt Board of the Concern Swisslion-Takovo, Milan Nikolin, has a manifold significance, mostly for the employees of Poslovni sistem "Industrija alata Trebinje, who, as of today will become a part of a big and successful family which pays special attention to the constant care for the workers and improvement of their social position. Nikolin added that Poslovni sistem "Industrija alata" Trebinje was to face a re-organization of its status, with the aim to establish a more efficient organization in order to increase the competitiveness of the products.

The agreement for signing the Contract on Sale of the state-owned capital in the enterprises of Poslovni sistem "Industrija alata Trebinje with Concern Swisslion-Takovo was given by the RS Government at its session held in Banjaluka on 2 November 2006.

19.01.2007. - Contract on sale of the state-owned capital in AD “Telecom Srpske” signed

”Signing of the Contract on Sale of the major portion of capital in “Telekom Srpske” to “Telekom Srbije” is historical date, because we managed to finalize privatization so that generally all benefit”, Prime Minister of Republic of Srpska Milorad Dodik said at the press conference, after signing of the Contract on Sale of 65% of the state-owned capital in AD “Telekom Srpske”.

Prime Minister Dodik said that the Government of Republic of Srpska would have the opportunity to demonstrate its capability to manage and invest, and added that funds from privatization of “Telekom Srpske”, in the amount of 646.000.000,00 euros, would be invested in new projects.

Prime Minister Dodik said that the Government intended to make the development project of Republic of Srpska based upon the funds from privatization, with the aim to provide for better life to all people and development of Srpska.

Expressing the pleasure due to the fact that all institutions in Republic of Srpska supported the sale of “Telekom Srpske”, Prime Minister Milorad Dodik expressed the expectation that this telecommunication company would become one of leaders at the BiH market.

”This is the proof that Republic of Srpska implemented properly privatization process, without single mistake, which would enable us to acquire soon all the necessary permits, and to register the new owner the company”, Prime Minister Dodik said.

Collaboration of Republic of Srpska and Serbia would be continued, in accordance with the Agreement on establishing of special parallel relations between Republic of Srpska and Republic of Serbia, and through construction of bridge at Rača, as well as in domain of health, education and other sectors, Prime Minister Dodik said.

Prime Minister of Serbia Vojislav Koštunica said that signing of this Contract was the largest investment of any Serbian company to date, which demonstrates power and strength of “Telekom Srbije”, but also the economic recovery of Serbia.

He stressed that signed Contract represents specific example of realization of the Agreement on establishing of special and parallel relations between Republic of Srpska and Republic of Serbia.
Prime Minister of Serbia Vojislav Koštunica congratulated to “Telekom Srbije” for proving to be the regional leader in domain of telecommunications, and to the Government of Republic of Srpska for implementing transparent tender.

Director of the Directorate for Privatization of Republic of Srpska Vladimir Mačkić said that signing of the Contract on sale of “Telekom Srpske” to company “Telekom Srbije” is the event of the first-class importance for Republic of Srpska and BiH.

”We truly believe that, after signing of this Contract, the economic and political perspectives would be more certain for Republic of Srpska and BiH”, Mačkih said.

He pointed out that the overall process of privatization of “Telekom Srpske” was carried out in accordance with the law on privatization and rules of tender sale, and in course of process itself, there were no processes that would affect negatively the public transparency or equal availability to all.

Director of “Telekom Srbije” Draško Petrović said that this job, which is now finalized, is equally useful for Serbia, Republic of Srpska, and for the whole BiH.

”Today, after we signed this Contract, we already have over 7,5 million users of fixed and mobile networks, and our goal is to increase number of users to 10 million, through the next three to four years”, Petrović said.

He stressed that this investment is significant factor for regional and economic integrations of Western Balkans, having in mind that “Telekom Srbije” would operate throughout BiH.

12.12.2006. – "Poljoprivredni zavod" Bijeljina signed

The Contract on Sale of the state-owned capital in the Joint Stock Company "Poljoprivredni zavod“/Agricultural Institute Bijeljina has been signed in the Directorate for Privatization. The buyer of 50.51% of the total enterprise capital is Production and Trade Company "AGRO-BN" Ltd Bijeljina.

The Contract on Sale was signed by Director of the Directorate for Privatization, Mr. Vladimir Mackic and Director of "AGRO-BN", Mr. Mihajlo Vidic. The selling price for 50.51% of the total capital is 105,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 250,000.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 50,000.00 KM
• in the Second Year of the Investment Period at least 100,000.00 KM
• in the Third year of the Investment Period at least 100,000.00 KM

According to the Contract, the buyer is also committed to employing, on average, at least the following number of employees on a permanent basis during the Employment Period:
• in the First Year of the Employment Period 32 workers,
• in the Second Year of the Employment Period 34 workers,
• in the Third Year of the Employment Period 36 workers

The Enterprise currently employs 30 workers.
The Buyer is also committed to maintaining the core activity of the Enterprise within 10 years from the executed privatization.

The buyer is committed to AD "Poljoprivredni zavod" Bijeljina submitting a proposal for getting a concession based on a self-initiated offer in accordance with the Law on Concessions.

The agreement for signing the Contract on Sale of the state-owned capital in the Joint Stock Company "Poljoprivredni zavod“/Agricultural Institute Bijeljina with Production and Trade Company "AGRO-BN" Ltd Bijeljina was given by the RS Government at its session held in Banjaluka on 2 November 2006.

05.12.2006.-“Telekom Srbija” offered 646 million EURO for 65% of state-owned capital in “Telekom                    Srpske” 

Government of Republic of Srpska approved today decision to sell 65% of state-owned capital in the company “Telekom Srpske” AD Banjaluka to “Telekom Srbija” that offered 646.000.000,00 EURO, as the best bidder at implemented international tender.

Government of Republic of Srpska decided to accept the Bid of “Telekom Srbija” after examination and discussion on Report of the Directorate for Privatization, on implementation of procedure of international tender with variable conditions, marked as BL-V-80/1, the purpose of which was sale of 65% of the state-owned capital in company “Telekom Srpske” AD Banjaluka.

Prime Minister of Republic of Srpska said that funds from sale of 65% of the state-owned capital in “Telekom Srpske” would be paid directly to the account of the Government of Republic of Srpska, and no debt settlement would be allowed.

Prime Minister Dodik said that money for purchase of “Telekom Srpske” would be paid after completion of all procedures that are set by the law, and upon signing of contract on purchase of the state-owned capital in "Telekom Srpske”.

Second-ranked bidder for purchase of 65% of state-owned capital in “Telekom Srpske” is “Telekom Austria” that offered 467 million EURO.

At today’s joint session with the Commission for implementation of tender for sale of “Telekom Srpske” and Council for Privatization of Republic of Srpska, the Government unanimously accepted the Report on process of implemented international tender of the Directorate for Privatization of Republic of Srpska.

”Accepting this decision, we demonstrated in the best possible way how every future privatization should be done”, Prime Minister Dodik said and added that Republic of Srpska should be proud of how this was done.

Director of the Directorate for Privatization of Republic of Srpska Vladimir Mačkić said that privatization of “Telekom Srpske” was initially started three years ago, while it was formally launched in January, when the contract was signed with consultants, the “Reiffeisen Investment”.

Director Mačkić clarified that development of privatization program followed this first step, and not a single procedural error disturbed this process.

Chairperson of the Commission for implementation of tender for sale of the state-owned capital in “Telekom Srpske” Mirjana Novaković – Gavric said that the whole process was implemented in accordance with the law, and the same opinion was given by Minister of Transport and Communications Nedeljko Čubrilović, as well as by Assistant Minister of Finance Božidar Plavljanin.

Today’s Government’s session was also attended by the Speaker of the National Assembly of Republic of Srpska Igor Radojičić, directors of Chamber of Commerce of Republic of Srpska Mladen Mićić and Banjaluka Stock Exchange Milan Božić, president of the Commission for Securities of Republic of Srpska Miodrag Jandrić and Chair of the RS Union Association Ranka Mišić.

01.12.2006.-Bids for „Telekom Srpske“ formally correct

The Commission for Conducting the Tender for Sale of 65% of the state-owned capital in the enterprise "Telekom Srpske" a.d. Banja Luka, has opened today the envelopes marked as "Bid Elements", which contain the offered price submitted by the bidders "Telekom Austria" and "Telekom Srbija".

Before the opening, the Commission had verified the formal correctness of both bids and found them both valid. Representatives of the bidders, "Telekom Austria" and "Telekom Srbija" attended the public opening of the bids in the Directorate for Privatization.

During the bids opening, the offered prices were not announced to the present representatives, since it is contrary to Article 82 of the Rules for Tender Sale. Article 82 stipulates that "all information contained in the envelope "Bid Elements" are considered confidential until the moment the report is submitted to the Government of the Republic of Srpska".

Pursuant to the Rules for Tender Sale, the Commission for Conducting the Tender shall continue its work on evaluation of the bids, comprised of the following: awarding points to the bid elements in accordance with the criteria stipulated in the tender documentation, ranking of the bids according to the total number of points awarded and making assessment about the acceptability of the bids.

20.11.2006.- Bids for "Telekom Srpske" submitted

• Telecom Austria AG,
• Telecommunication Enterprise "Telekom Srbija"a.d.

27.09.2006- Privatization of the Tobacco Industry Banjaluka

The Contract on Sale of the State-Owned Capital in the Joint Stock Company "Fabrika duvana"/Tobacco Industry Banja Luka was signed today in the Directorate for Privatization. The buyer of 55% of the total Company capital is "Antonic Trade“ (Limited Liability Company) Laktasi.
The Contract on Sale was signed by the Director of the Directorate for Privatization Vladimir Mackic and the owner of the Company „Antonic Trade“, Mr. Nebojša Antonić. The selling price for 55% of the total capital is 2,077,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to the total of 4,770,000.00 KM in the coming three years of the Investment Period, originating from his own resources, according to the following scheme:

• in the First Year of the Investment Period at least 2,400,000.00 KM
• in the Second Year of the Investment Period at least 1,750,000.00 KM
• in the third year of the Investment Period at least 620,000.00 KM

According to the Contract, the buyer is also committed to employing, on average, the following number of employees on a permanent basis:

• in the First Year of the Employment Period 315 workers,
• in the Second Year of the Employment Period 330 workers,
• in the Third Year of the Employment Period 350 workers.

The Enterprise currently employs 293 workers.

The buyer is also committed to keeping the core activity of the Enterprise for 5 years after the execution of the privatization. The buyer is committed to adhere to and implement the Collective Agreement signed between the Joint Stock Company "Fabrika duvana"/Tobacco Industry Banjaluka and the Trade Union of the Enterprise.

By signing the Contract on Sale of the state-owned capital, the buyer has also taken over the liabilities of the Enterprise which amounted to 7,425,177.00 KM as of 30 June 2006. The agreement for signing the Contract on Sale of the state-owned capital in the Joint Stock Company "Fabrika duvana"/Tobacco Industry Banjaluka with the Company Antonic Trade, Ltd was given by the RS Government at its session held in Banjaluka on 20 July 2006.

26.09.2006.god. - Cajavec „Sistemi Upravljanja“ Privatized

The new owner of 67.27% of the state-owned capital of the enterprise Cajavec „Sistemi upravljanja“ Joint Stock Company. Banjaluka is Hemofarm, Joint Stock Company, Pharmaceutical and Chemical Industry from Vršac.
The Contract on Sale was signed by Director of the Directorate for Privatization Vladimir Mackic and President of „Hemofarm“, Mr. Miodrag Babic. The selling price for 67.27% of the total capital is 100,000.00 KM.
Pursuant to the Contract, the buyer is committed to making an investment amounting to the total of 2,298,100.00 KM in the Investment Period of one year. The obligation of the Buyer is full-time employment on a permanent basis of at least 23 workers. In the procedure of transition into a planned production programme (production of the solid forms of medicines, enlargement of warehousing capacity, streamlining of activities).
The Buyer is committed, in line with the positive regulations, to making the programme of social security for employees in the manner defined in the procedure of tender sale and to implementing it in accordance with nominal values at the time of the realization of the programme. The social security programme shall regulate the preferential right of employment, under equal conditions, to employees in the Enterprise as well as in the enterprise Hemofarm,Ltd Banja Luka. The agreement for signing the Contract on Sale of the state-owned capital in the enterprise Cajavec „Sistemi upravljanja“, JSC Banjaluka with the Company Hemofarm, JSC Vrsac was given by the RS Government at its session held in Banjaluka on 7 September 2006.

20.09.2006. –Bid submission deadline for „Telekom Srpske“ extended

Pursuant to the Rules for Tender Sale and Public Invitation for submission of bids for the purpose of participating in the International Tender with Variable Conditions for sale of the state-owned capital in the enterprise "Telekom Srpske" a.d. Banja Luka, published on 4 August 2006, Directorate for Privatization in the Republic of Srpska has decided to extend the deadline for submission of bids.

The new bid submission deadline expires on 3 November 2006, at 15:00h. The reasons for extension of the deadline are as follows: the great interest of the tender participants, potential bidders, as well as obligation of the Directorate for Privatization to enable access to business operations of the Company to all interested parties.
Requests for Purchase of the Tender Documentation were submitted by 11 companies within the deadline stipulated in the Public Invitation. So far, the Tender documentation has been purchased by the following companies:

• Telekom Austria
• Magyar Telecom
• Novator, Iceland
• Telenor, Norway
• Sistema Telecom, Russia
• Telekom Serbia
• France Telecom

05.09.2006. – 11 companies expressed interest for „Telekom Srpske“

Requests for purchase of Tender documentation in the International Tender for sale of 65% in the enterprise "Telekom Srpske" a.d. Banja Luka, were submitted by the following companies:

• Sistema Telecom , Russia,
• Telekom Srbija, Serbia,
• Telekom Austria, Austria,
• Telenor, Norway
• Magyar Telekom, Hungary,
• France Telecom, France,
• Novator, Island,
• Elisa Corporation, Finland,
• Orascom Telecom, Egypt,
• Valiva AG, Switzerland,
• PlanetSky, Cyprus.

The deadline for submitting the request for purchase of the Tender documentation, in accordance with article 4 of the Public Invitation for Participation in the International Tender for Sale of the State-Owned Capital in "Telekom Srpske a.d. Banja Luka, expired yesterday, at 15:00h.
As stipulated by the Public Invitation, upon receipt of the Request, the Financial Advisor, Raiffeisen Investment AG shall immediately forward the Confidentiality Statement for signature to the interested party. The interested party should return, without delay, the duly signed Confidentiality Statement to the Financial Advisor and settle the payment of the Fee amounting to 50,000.00 KM.
Upon receiving the duly signed Confidentiality Statement and the confirmation from the Directorate that the Fee has been paid, the Financial Advisor shall provide the Tender participant with the Tender documents.

Interested parties eligible to participate in the Tender are those meeting the following qualification criteria:
• have over 800,000 subscribers (users) in the fixed telephone network
• have over 1,500,000 subscribers (users) in the mobile telephone network,
• have generated a total annual revenue of at least 500,000,000.00 EUR in the 2005 business year

A Consortium shall also have the right to participate in the Tender, provided that at least one member of the Consortium independently meets the qualification criteria and that that very member of the Consortium buys at least 35% of the total capital of the enterprise.

Bids should be submitted directly to the Directorate no later than 4 October 2006, at 15:00h.

By submitting the bid, the Tender participant accepts the following Tender conditions:

- Adhering to the Collective Agreement signed between the Company and the Company’s trade union, on 15 March   2004, with amendments as of 28 April 2006 for a period of at least 5 years following the Closing Date;
- Maintaining the core activity of the Company for a period of at least 5 years following the Closing Date;
- Permanently keeping the registered Company seat in Banja Luka;
- Making investments in the minimum amount of EUR 50,000,000.00 (fifty million euros) within one year following   the Closing Date;
- Complying with the Agreement between the Government of the Republic of Srpska and the Company, on   inalienable right of the Government of the Republic of Srpska to use the Company’s telecommunications   infrastructure;
- Voting for a decision on distribution of profit for the 2006 business year at the Company's Shareholders' Assembly,   in such manner that the total profit, upon earmarking into reserves stipulated by the Law, is paid out to the   shareholders as dividend, with a part of the dividend belonging to the owner of the capital which is the subject of   sale in the Tender, and referring to the period prior to the Closing Date, is paid to the Government of the Republic   of Srpska.

17.08.2006. – Contract on Sale of the state-owned capital in the Bauxite Mine „Srebrenica“

The Contract on Sale of the state-owned capital in the Joint Stock Company Bauxite Mine "Srebrenica“ from Srebrenica has been signed in the Directorate for Privatization. The buyer of 65% of the total enterprise capital is the Joint Stock Company for Production, Trade and Services „Balkal“from Banjaluka.

The Contract on Sale was signed by the Director of the Directorate for Privatization Vladimir Mackic and the Acting Director of „Balkal“, Mr. Darius Zakarauskas. The selling price for 65% of the total capital is 220,000.00 KM.

Pursuant to the Contract, the buyer is commited to making an investment amounting to 4,150,000.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 850,000.00 KM
• in the Second Year of the Investment Period at least 1,700,000.00 KM
• in the Third year of the Investment Period at least 1,600,000.00 KM

According to the Contract, the buyer is also committed to employing, on average, at least the following number of employees on a permanent basis during the Employment Period:
• in the First Year of the Employment Period 150 workers,
• in the Second Year of the Employment Period 200 workers,
• in the Third Year of the Employment Period 220 workers

The Enterprise currently employs 42 employees. The buyer's obligation is also resolving of the work-related and legal status of all employees and employment of the former workers.
Also, the Buyer is committed to maintaining the core activity of the Enterprise within 3 years from the executed privatization.

By signing the Contract on Sale of the state-owned capital, the Buyer has taken over the liabilities of the Enterprise which amounted to 2,015,856.00 KM as of 31.12.2005.

The agreement for signing the Contract on Sale of the state-owned capital in the Joint Stock Company Bauxite Mine "Srebrenica" with the Joint Stock Company for Production, Trade and Services „Balkal“from Banjaluka was given by the RS Government at its session held in Banjaluka on 22 June 2006.

17 07.2006. – The Contract on Sale of the state-owned capital in „Luka“ Šamac signed

The Contract on Sale of the state-owned capital in the Joint Stock Company Goods Transportation Center "Luka“ Samac has been signed in the Directorate for Privatization. The buyer of 65% of the total enterprise capital is Balkan Steel International Establishment from Liechtenstein.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the owner of Balkan Steel International Establishment Goran Tomić. The selling price for 65% of the total capital is 1,200,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 6,560,000.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 2,210,000.00 KM
• in the Second Year of the Investment Period at least 1,960,000.00 KM
• in the Third year of the Investment Period at least 2,390,000.00 KM

According to the Contract, the buyer is also committed to employing, on average, at least the following number of employees on a permanent basis during the Employment Period:
• in the First Year of the Employment Period 10 workers,
• in the Second Year of the Employment Period 15 workers,
• in the Third Year of the Employment Period 20 workers

The Buyer is also committed to maintaining the core activity of the Enterprise within 3 years from the executed privatization

The agreement for signing the Contract on Sale of the state-owned capital in the Joint Stock Company Goods Transportation Center "Luka“ Samac with Balkan Steel International Establishment was given by the RS Government at its session held in Banjaluka on 22 June 2006.

13.07.2006. – Privatization of „Jelšingrad – Fabrika mašina“ AD Gradiška

The Contract on Sale of the state-owned capital in „JELŠINGRAD - Fabrika mašina“ AD Gradiška has been signed in the Directorate for Privatization. The buyer of 50%+1 share of the total enterprise capital is „Beorchia S.r.l“, Italy, on whose behalf and for whose account "PMP Holding S.r.l." from Italy is acting.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the legal representative and authorized signatory of the buyer, Mr. Luigino Pozzo. The selling price for 50%+1 share of the total capital is 352,049.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 4,467,438.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 3,098,357.00 KM
• in the Second Year of the Investment Period at least 391,166.00 KM
• in the Third Year of the Investment Period at least 977,915.00 KM

According to the Contract, the buyer is also committed to employing, on average, at least the following number of employees on a permanent basis during the Employment Period:
• in the First Year of the Employment Period 64 workers,
• in the Second Year of the Employment Period 70 workers,
• in the Third Year of the Employment Period 80 workers

The Buyer is also committed to maintaining the core activity of the Enterprise within 3 years from the executed privatization.

The agreement for signing the Contract on Sale of the state-owned capital in Jelšingrad-Fabrika mašina“ AD Gradiška with „Beorchia S.r.l“, Italy was given by the RS Government at its session held in Banjaluka on 18 May 2006.

11.05.2006 - The Contract on Sale of the state-owned capital in Veterinarian Station Gacko signed

The Contract on Sale of the state-owned capital in the Joint Stock Company, Veterinarian Station Gacko has been signed in the Directorate for Privatization. The buyer of 65.01% shares of the total enterprise capital is the Private Company for Production, Trade and Services "Agro-Eko", Ltd Trebinje.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the Director of the Company „Agro-Eko“ Branislav Sučević. The selling price for 65.01% shares of the fixed capital is 3.000,00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 15,000.00 KM, taking over the total number of employees in the Enterprise and hiring a new veterinarian within the coming three years. The Buyer is also committed to maintaining the core activity of the Enterprise for the next 10 years.

As highlighted upon the signing of the Contract, the Buyer, „Agro-Eko“ intends to improve the production cycle and thus make a complementary system, from production of stock-feed to registration and medical treatment of the livestock and providing other veterinarian services.

The agreement for signing the Contract on Sale of the state-owned capital in the Joint Stock Company, Veterinarian Station Gacko with the Private Company for Production, Trade and Services "Agro-Eko" Ltd, Trebinje was given by the RS Government at its session held in Banjaluka on 25 March 2006.

15.03.2006- The Contract on Sale of the state-owned capital in „JELŠINGRAD“ Fabrika mašina i dizalica                   AD Prnjavor signed

The Contract on Sale of the state-owned capital in „JELŠINGRAD“ Fabrika mašina i dizalica AD Prnjavor (Machine and Crane Factory, Joint Stock Company Prnjavor) has been signed in the Directorate for Privatization. The buyer of 65% shares of the total enterprise capital is "M-PROFIL", Limited Liability Company for Production, Construction and Trade, Zabok, Croatia.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the Director of "M-PROFIL", Limited Liability Company for Production, Construction and Trade, Mr. Zdravko Valec. The selling price for 65% shares of the total capital is 435,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 1,500,000.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 900,000.00 KM
• in the Second Year of the Investment Period at least 400,000.00 KM
• in the Third Year of the Investment Period at least 200,000.00 KM

According to the Contract, the buyer is also committed to employing, on average, at least the following number of employees on a permanent basis during the Employment Period:
• in the First Year of the Employment Period 89 workers,
• in the Second Year of the Employment Period 94 workers,
• in the Third Year of the Employment Period 104 workers

The Buyer is also committed to maintaining the core activity of the Enterprise within 3 years from the executed privatization.

The Buyer is going to settle the existing debts of the Enterprise, modernize the productions plants and increase the production of the steel constructions and their assembling, as stated by the Director Zdravko Valec after signing of the Contract. Our co-operation with "Jelsingrad" from Prnjavor had been successful before the privatization, and thus we are expecting to achieve more than objectives set in the business plan, said Zdravko Valec. Director of the Factory "Jelsingrad" from Prnjavor expressed his satisfaction over the good deal. We have got a strategic partner with whom we are going to expand our production programme, from production of machines and cranes, steel constructions and fittings to a new, large series production, said Zoran Stanic and added that there would be no dismissals of employees, but rather hiring of additional workforce.

The agreement for signing the Contract on Sale of the state-owned capital in „JELŠINGRAD“ Fabrika mašina i dizalica AD Prnjavor (Machine and Crane Factory, Joint Stock Company) Prnjavor with "M-PROFIL", Limited Liability Company for Production, Construction and Trade, Zabok, Croatia, was given by the RS Government at its session held in Banjaluka on 9 February 2006.

14.03.2006. – Privatization of „Energoinvest“ Rasklopna oprema AD Istočno Sarajevo

The Contract on Sale of the state-owned capital in „Energoinvest“ Rasklopna oprema AD(Joint Stock Company, Switching Equipment) Istočno Sarajevo has been signed in the Directorate for Privatization. The buyer of 64.27% shares of the total enterprise capital is Production and Trade Company "Jugotrade", Limited Laiability Company Belgrade.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the Director of the Production and Trade Company "Jugotrade", Limited Laiability Company Belgrade, Mr. Predrag Nikić. The selling price for 64.27% shares of the total capital is 500,000.00 KM.

Pursuant to the Contract, the buyer is committed to making an investment amounting to 2,000,000.00 KM in the following three years of the Investment Period, according to the following scheme:
• in the First Year of the Investment Period at least 670,000.00 KM
• in the Second Year of the Investment Period at least 670.000,00 KM
• in the Third Year of the Investment Period at least 660.000,00 KM

According to the Contract, the buyer is also committed to keeping 366 workers in the Enterprise and to hiring new employees in the coming period, so as to have at least 600 employees at the end of the Employment Period, after three years.

The Buyer is also committed to maintaining the core activity of the Enterprise within 3 years from the executed privatization.

"Jugotrade" company, as stressed by the Director Predrag Nikić, is a large system which comprises of several business units, from production of the electric measuring equipment, telecommunication equipment, telecommunications engineering to general agency of Motorola for Serbia and Montenegro. Ljubomir Jovanović, the future Director of „Energoinvest“ Rasklopna oprema, stated that the proposed business plan is only a part of activities which are intended to be commenced in the enterprise. By modernizatin of production plants and items, introducing new technologies, we will provide competitiveness and return "Energoinvest" Rasklopna oprema to the world market, said Ljubomir Jovanovic.

The agreement for signing the Contract on Sale of the state-owned capital in „Energoinvest“ Rasklopna oprema AD Istočno Sarajevo with Production and Trade Company "Jugotrade", Limited Laiability Company Belgrade was given by the RS Government at its session held in Banjaluka on 9 February 2006.

17.01.2006.- Contract on Sale of the state-owned capital in NISP "Oslobodjenje" AD Istočno Sarajevo                     signed

The Contract on Sale of the state-owned capital in NISP "Oslobodjenje" AD Istočno Sarajevo has been signed in the Directorate for Privatization. The buyer of 64.98% shares of the total enterprise capital is the Trading company "Darta trgovina", Limited Liability Company Banja Luka.

The Contract on Sale was signed by the Director of the Directorate for Privatization, Mr. Vladimir Mackic and the Director of the Trading Company ""Darta trgovina, Mr. Darko Djudurovic. The selling price for 64,98% value of the total capital is 100.00 KM and it is symbolic since "Oslobodjenje" has a negative capital, i.e. liabilities are higher than the capital value.

Pursuant to the Contract, the buyer is committed to settling due liabilities of the enterprise towards the Pension Fund amounting to 530,000.00 KM (principal and interest) , according to the following scheme:

• amount of 260,000.00 KM within 7 days from the day of receiving the Announcement of Executed Privatization, at   the latest
• amount of 270,000.00 KM within 30 days from the date of payment of the previous amount, at the latest

Also, the buyer is committed to employing 250 workers in the first year of the Employment Period, in the Second Year 270 workers and in the Third Year of the Employment Period 290 workers.
The agreement for signing the Contract on Sale of the state-owned capital in NIŠP „Oslobodjenje" with the Trading company "Darta trgovina", Limited Liability Company Banja Luka was given by the RS Government at its session held in Banjaluka on 15 December 2005.