Privatization: Special spin-off for 'Ferronikeli'

Prishtina, 8 July 2004 – Ferronikeli is the first socially owned enterprise to be privatised through the special spin off process, reports Kosovar daily “Pavarësia”. Deputy director of privatisation, Kirk Adams, told the paper that there are about 40 – 50 companies interested in Ferronikel.

“Ferronikel activation requires about 30 – 50 million euros of investment. Using the special spin-off method, KTA will sell the enterprise with conditions on investment. We’ve insisted that the company purchasing Ferronikel should invest at least 20 million euros in the assets only,” Adams is quoted as saying. He added that the market would determine the selling price.

Special spin-off will be applied in the case of Ferronikel since it is an enterprise with a great impact on Kosovo’s economy and with an employment potential of 1000 workers, added Adams. Another condition is for the buyer to ensure that plants will be built in Kosovo and nowhere else. Taking into consideration that Ferronikel activation requires almost 50 million euros the company could be sold for 1 euro in another country. However, according to Adams that will not be the case in Kosovo. “If we make a simple calculation, full activation of Ferronikel would generate annual revenues from 100 to 120 million euros,” said Adams. If the wining bid is considered lower that the real one, that the KTA Board has the right to annul the tender, he added.