¤ The state-owned share package would be reduced to below 51%, which would significantly diminish the interest of potential investors who want a controlling package;
¤ Selling a reduced stock of shares would mean reducing the additional amount of value that the state will be able to obtain;
¤ The employees could receive a bonus from the new shareholder, who will have his own motivation strategy for the employees.
¤ The interest shown by potential investors is for a controlling package of 60-70% of shares. AVAS owns 53.027% of the share capital of „Antibiotice”. In order to make the most of the state-owned shares, AVAS initiated discussions with minority shareholders for the sale of a controlling stake in a joint offer.
1. Publication of the privatization announcement in the first part of November;
From the moment of the publication of the privatization offer, potential investors will have a one month window during which they can submit pre-qualification documents to:
– Demonstrate the experience they have in the pharmaceutical industry and the ability to do financial investments (for investment funds);
– have the capacity to achieve development investments, working capital and environmental protection (amounts to be published in the sales notice).
Competitors will be selected by applying the prequalification criteria listed in the ad. Selected companies will be invited to submit their financial offers in the second part of December.
On the basis of the financial offer submitted by the potential bidders, AVAS will select the first two.
By the end of December, the first two bidders remaining in the privatization race will submit improved and final bids based on which the winner will be selected. The terms of the privatization contract will be negotiated as of January 2007.