The Serbian Government has approved an initiative to begin the privatization process of NIS, according to Economic Minister Predrag Bubalo. The privatization of the company will be in accordance with the NIS Privatization Strategy, which envisages selling 25 % of stock first, obligating the strategic partner to invest US$ 500m in the first three years. It will also grant the strategic partner control over management, while the government will retain its veto right in important issues. No exact time horizon for privatization was named.
Our view: It is still unclear when and at what price NIS would be for sale and therefore we regard the news as neutral. Though MOL confirmed its interest for Serbian company there are other rival like Lukoil or Hellenic Petroleum which could have more chances to win the tender.