Serbian State on Thursday published a prospectus for its NIS giving potential investors a week to express their interest in a 25 % stake that will formally go on sale this month. The government expects to get at least US$ 300m for the stake, based on NIS's US$1.2 bn nominal total value. The buyer would get another 12.5% stake through a US$ 250m capital increase and would have to reinvest a further US$ 250m from NIS profits over three years. Following the IPO, the initial buyer will have the chance to boost its holding to 49 percent, depending on the company's three-year performance.
Our view: MOL, PKN Orlen, OMV, Hellenic Petroleum and Lukoil expressed its interest in privatization. Though MOL would have the biggest synergies from this acquisition, we think it has fewer chances when compared to Lukoil due to the political reasons. OMV would also push hard for the stake and, given the already famous ability of Austrians to find the common language with CEE governments, its chances might also be quite high.