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Two bids submitted for acquisition of Sisak tube rolling mill, both turned down

ZAGREB, Dec 22 (Hina) - Two bids for the acquisition of the entire stock capital of the Sisak Tube Rolling Mill (VCS), submitted by the Zagreb-based company CIOS and the German company Rohrwerk Maxhutte, were opened at the Croatian Privatisation Fund on Friday, but both offers were turned down because they were not in line with bidding conditions.
ZAGREB, Dec 22 (Hina) - Two bids for the acquisition of the entire stock capital of the Sisak Tube Rolling Mill (VCS), submitted by the Zagreb-based company CIOS and the German company Rohrwerk Maxhutte, were opened at the Croatian Privatisation Fund on Friday, but both offers were turned down because they were not in line with bidding conditions.

The opening price of VCS was 101.26 million kuna, and CIOS offered one kuna, thus failing to meet the first condition from the tender, said HFP vice-president for sales Ivan Gotovac.

Rohrwerk Maxhutte offered to establish a new legal entity into which part of VCS's property and employees would be transferred, while the existing company with the rest of property and employees would continue to be owned by the state.

The proposed takeover structure completely differs from the tender, Gotovac said.

The German company said in its bid that during due diligence in the Sisak Tube Rolling Mill it did not have complete insight into the company's business operations and assets and that it did not have any guarantee that the situation in the company was as it was described.

Bidding documents for VCS were bought by four other companies.

Considering the high price (25% of the nominal value of the 100% share) and major investments that need to be made, it was little likely that the company would be sold in the first bidding round, Gotovac said, adding that another invitation for bids with special sale conditions would be prepared soon.

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