Privatization of Mostar Aluminij

The opening offer from a consortium of UKIO Bank Investment Group (UBIG) and Aluminium Konin-Impexmet for an 88 percent share in Aluminij d.d. Mostar is €141.5 million, Alnija Brusokiene, president of the Birač alumimun factory in Zvornik and a representative of the Lithuanian based UBIG in the Balkans, said today in a news conference.

She said the consortium was willing to invest another €360.6 million in consortium funds plus factory revenue back into the manufacturing complex.

Brusokiene said that Birač would supply Aluminij with raw materials and the plant could sell aluminum to companies in Bosnia and Herzegovina and Croatia.

Late last week, the Center for Investigative Reporting in Sarajevo (CIN) published stories about the privatization of Aluminij and the companies interested in buying it. On April 23, eight companies submitted non-obligatory bids on the plant.

Brusokiene said that on Thursday the public will find out how many companies will be picked for second round of bidding. These firms will have at least a week to complete an in-depth review of Aluminij’s business.

Aluminij’s total income in 2006 was 563.2 million KM (€287.9 million) so that the nominal value of an 88 percent share is 150.3 million KM (€76.8 million).