OREANDA-NEWS. May 17, 2010. Competitive tenders to sell state shares in five Belarusian open joint-stock companies will be held on August 18 and September 23, 2010.

The five companies are Bobruisk Engineering Plant, VolMET, Lida casting and mechanical plant, Barkhim, based in Baranovichi, and Rechitsa textile.

All bidders are expected to pay the State Property Fund of the State Property Committee 10% of the initial price.

Bobruisk Engineering Plant’s net assets are estimated at 33.502 billion Belarusian rubles (Br) (as of January 1, 2010). The company employs 1,187 personnel. The state offers a controlling stake of 50% plus one share, or 2.8 million shares. The state controls 99.2% in the company. The investor is expected to contribute 15 billion rubles to the share capital of the company for development projects within 12 months of the transaction date and keep the number of jobs unchanged within 24 months. The initial price is 16.752 billion rubles.

VolMET’s net assets are worth 5.195 billon rubles (as of January 1, 2010). It has a staff of 478. The state plans to sell 108,402 shares, or a 48.9% stake. The investor is supposed to provide the company with 2 billion rubles for development projects within 24 months of the transaction date. The initial price is 2.545 billion rubles.

In Lida casting and mechanical plant, which employs 400 personnel, the government plans to sell 2.217 million shares, 99.5% of the total. The investor is expected to inject an equivalent of USD 1 million in the share capital of the company for development projects within 24 months of the transaction date and keep the number of jobs and core activity of the company unchanged within 24 months. The initial price is 12.201 billion rubles.

Barkhim’s net assets are estimated at 33.164 billion rubles. The company has a staff of 256. Within two years of the contract date, the investor shall increase the capacity of the company by at least 20,000 tonnes of synthetic detergents annually and keep the core activity of Barkhim and the number of jobs unchanged within 60 months. He state puts up for sale 2.569 million shares, a 99.4% stake. The initial price is 32.97 billion rubles.

Rechitsa textile will be sold on condition that the investor extends a development loan to the company equivalent to at least 4 million euros within 24 months of the acquisition date, at an annual rate of 5% for 10 years with a five-year respite of repayment starting the loan date. Besides, the investor shall preserve the core activity of the company and number of jobs and maintain the social infrastructure of the company within 60 months of the contract date. Rechitsa textile’s net assets are worth 24.495 billion rubles; the state will sell a 97.6% stake, or 1.141 million shares. The company has a staff of 660. The initial price is 23.919 billion rubles.