Republika Srpska sells HET, Serbia interested in buying

(Patria) - The capital increase of the company „Hidroelektrane na Trebišnjici“ (HET), planned through the sale of shares on the Banja Luka Stock Exchange, means the privatization of that company. According to unconfirmed information, Serbia is interested in buying shares, which would take control of one of the most profitable parts of „Elektroprivreda Republike Srpske“ (ERS).

Portal CAPITAL published today that HET plans to increase its capital by issuing shares worth as much as 435 million marks, which is 50 million KM more than the current total value of the company's share capital.

Financial and capital market experts with whom CAPITAL spoke agree that the mentioned sale of shares means the privatization of HET.

„This sale of shares means the privatization of the company, the ownership structure changes, more shares are issued than HET has. If someone buys all of them, they have a majority package, which means privatization, without a decision of the National Assembly of Republika Srpska. The Decision does not state any limitation, i.e., that someone cannot acquire more than 10 percent of the shares, which means that one person can buy the entire issue of shares“, claim capital market experts.

They add that, in addition, until now, when selling state capital, a confirmation was required that the buyer had settled obligations, but now this is not required, and any tax debtor can buy shares.

„The concept of managing a public company has been completely destroyed“, the experts are categorical.

They also agree that there are many unknowns because it is not defined who is exempt from a takeover if they acquire more than 30 percent of HET's capital.

„The one who acquires that part of the shares must, by law, enter into a takeover, but they are exempt from that. This is privatization through the back door, there is an interest from Serbia to buy shares for 50 million euros and gain control over the company. There are many unknowns, for little money someone completely new and from the outside can take over the majority package of shares in HET“, state the interlocutors of CAPITAL.

The selling price of shares for shareholders using pre-emptive rights is 0.29 KM per share. The price for the remaining shares will be formed on the stock exchange, based on the principle of multiple prices, with the sell order being entered at a price of 0.29 KM. The standard price increase is 0.01 KM.

In addition to the Decision on the issuance of shares through a public offering, which was placed on the agenda of the HET Shareholders' Assembly meeting for January 21, a Decision on exemption from the obligation to publish a takeover offer for investors – buyers of the share issue has also been proposed.

„Investors – buyers of the second issue of shares issued through a public offering by HET are allowed to acquire over 30 percent of the total number of votes carried by the Issuer's shares, independently or with related parties, without the obligation to conduct a takeover procedure for the remaining shares of the Issuer in accordance with the Law on Takeover of Joint Stock Companies“, stated in the proposed Decision.

We remind you, HET ended the third quarter of last year with a profit of 4.4 million KM, and at the half-year it had retained earnings of 35.2 million KM. Total capital at that time amounted to 907.9 million KM.

When the issue of privatization of „Elektroprivreda RS“ was previously mentioned, government representatives were categorical that this would not happen and that it was not planned.

„No one in the Government of Republika Srpska is thinking about the privatization of any public company, including `Elektroprivreda RS`“, previously stated RS Prime Minister Radovan Višković.