Privatization Agency refutes Esmark owner's statement

Privatization Agency refutes Esmark owner's statement

BELGRADE -- The Privatization Agency has refuted a statement made on Wednesday by Chairman and Chief Executive Officer of Esmark Europe BV James Bouchard.

Bouchard previously said the negotiations on the takeover of Zelezara Smederevo steel mill failed because the Serbian side in the talks changed the previously agreed financial provisions.

The Agency noted that the funds to the total value of USD 130 million and the USD 200 million working capital credit facility which Bouchard qualified as a part of the offer put forth by the U.S. company do not constitute new or fresh capital Esmark would invest in Zelezara.

During the talks in Pittsburgh last week, no agreement on 'previous provisions' were reached as Esmark stated in its release, the Agency told Tanjug.

It is a fact that certain progress was achieved in the talks, but Minister of Finance Dusan Vujovic made it clear to Esmark officials during the talks that their final offer would be discussed with Serbian Prime Minister Aleksandar Vucic, other members of the Serbian government and privatization commission of Zelezara Smederevo through the method of strategic partnership, the Privatization Agency explained.

We want to note that Esmark changed its offer on several occasions after the visit to Pittsburgh, especially with regard to the co-signature matters, corporate guarantees and minimum level of working capital, states the release.

The Agency particularly noted that Zelezara Smederevo should have invested USD 130 million in its capital assets from its own resources.

Ergo, this is not the money that Esmark would introduce to Zelezara Smederevo, it is rather a regular reinvestment from the...