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Croatian Privatisation Fund accepts bid by Swiss CMI to purchase Sisak tube-rolling mill

Autor: ;vmic;
ZAGREB, April 24 (Hina) - The Croatian Privatisation Fund on Tuesday accepted the bid by the Swiss company Commercial Metals International (CMI) to purchase a 100% stake in the Croatian tube-rolling mill Valjaonica Cijevi Sisak (VCS), and the decision is expected to be approved by the government this week.
ZAGREB, April 24 (Hina) - The Croatian Privatisation Fund on Tuesday accepted the bid by the Swiss company Commercial Metals International (CMI) to purchase a 100% stake in the Croatian tube-rolling mill Valjaonica Cijevi Sisak (VCS), and the decision is expected to be approved by the government this week.

CMI offered HRK 37 million for the shares of the former Sisak ironworks, specifying that it would pay HRK 10 million immediately and the remaining 27 million once VCS cancelled the annex to the agreement with Italian company Pipex granting it the exclusive right to distribute the products of the Sisak company.

The Swiss company pledged to invest over HRK 200 million in VCS property and over HRK 300 million in working capital over the next five years. It would also keep 1,209 workers at VCS and 207 workers at Remont Caprag for the next three years in accordance with an agreement between CMI and the trade unions operating in the Sisak company.

(EUR 1 = HRK 7.4)

(Hina) vm

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