Austrians confirm: RTB Bor acquisition falls through

Austrian consortium A-TEC has announced it is pulling out of the deal to buy RTB Bor. This came after the Privatization Agency rejected the consortium's request to be allowed more time to pay the remaining USD 316mn. A-TEC last year won the second tender buy the eastern Serbia-based copper mining and processing company, RTB Bor. Austrians confirm: RTB Bor acquisition falls through B92 learned earlier that the Privatization Agency, conducting the sale on behalf of the state of Serbia, told the Austrians that unless the money was paid by midnight today, the contract with A-TEC would be declared null and void, and negotiations with the second-placed bidder, Russian oligarch Oleg Deripaska's SMR, would begin. B92 has also unofficially learned that, in case the deal fell through, the state intended to keep not only the auction deposit of USD 10mn, but also the USD 150mn A-TEC has already paid. Earlier, the Privatization Agency said that the Austrian company asked for an extension to be approved immediately for paying the remaining USD 316mn for the purchase, the agency’s Communications Director Dusan Belanovic told the Tanjug news agency. He confirmed that the agency had received A-TEC’s proposal and that it was looking into the request together with officials from the Economy and Regional Development Ministry, held by G17 Plus. Last year, A-TEC agreed to pay USD 466mn for the acquisition of RTB Bor. Belgrade media reported today that A-TEC was having problems securing the necessary funds from Deutsche Bank "because of the political situation in Serbia", and that it would ask for the deadline to be extended "beyond the Serbian parliamentary elections". The original deadline given to A-TEC owner Mirko Kovac for paying the full USD 466mn was February 22, which was subsequently extended. He announced in mid-March that A-TEC had prepared the money for RTB Bor by taking out loans from an Austrian bank. Kovats, a Vienna-based businessman of Serbian nationality, has been involved in several lines of business including trade, production, club ownership, and his A-TEC company entered the Serbian market several years ago with the purchase of the Subotica-based company Sever. After media claims that Kovats was being criminally prosecuted in Austria, the Austrian ambassador in Belgrade, at the request of the Privatization Agency, said that "A-TEC was a very well respected company". This is the second time that the sale of RTB Bor has fallen through, after last year's fiasco with Romania's Cuprom, which also failed to provide financial guarantees for the acquisition.

Austrians confirm: RTB Bor acquisition falls through

B92 learned earlier that the Privatization Agency, conducting the sale on behalf of the state of Serbia, told the Austrians that unless the money was paid by midnight today, the contract with A-TEC would be declared null and void, and negotiations with the second-placed bidder, Russian oligarch Oleg Deripaska's SMR, would begin.

B92 has also unofficially learned that, in case the deal fell through, the state intended to keep not only the auction deposit of USD 10mn, but also the USD 150mn A-TEC has already paid.

Earlier, the Privatization Agency said that the Austrian company asked for an extension to be approved immediately for paying the remaining USD 316mn for the purchase, the agency’s Communications Director Dušan Belanović told the Tanjug news agency.

He confirmed that the agency had received A-TEC’s proposal and that it was looking into the request together with officials from the Economy and Regional Development Ministry, held by G17 Plus.

Last year, A-TEC agreed to pay USD 466mn for the acquisition of RTB Bor.

Belgrade media reported today that A-TEC was having problems securing the necessary funds from Deutsche Bank "because of the political situation in Serbia", and that it would ask for the deadline to be extended "beyond the Serbian parliamentary elections".

The original deadline given to A-TEC owner Mirko Kovač for paying the full USD 466mn was February 22, which was subsequently extended.

He announced in mid-March that A-TEC had prepared the money for RTB Bor by taking out loans from an Austrian bank.

Kovats, a Vienna-based businessman of Serbian nationality, has been involved in several lines of business including trade, production, club ownership, and his A-TEC company entered the Serbian market several years ago with the purchase of the Subotica-based company Sever.

After media claims that Kovats was being criminally prosecuted in Austria, the Austrian ambassador in Belgrade, at the request of the Privatization Agency, said that "A-TEC was a very well respected company".

This is the second time that the sale of RTB Bor has fallen through, after last year's fiasco with Romania's Cuprom, which also failed to provide financial guarantees for the acquisition.