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Bosnia region to auction stake in Sarajevo tobacco factory on Sept 1
August 4, 2016 / 3:51 PM / a year ago

Bosnia region to auction stake in Sarajevo tobacco factory on Sept 1

SARAJEVO, Aug 4 (Reuters) - Bosnia’s autonomous Bosniak-Croat Federation will sell 39.9 percent stake in tobacco factory Fabrika Duhana Sarajevo on Sept 1, hoping to raise 42.7 million Bosnian marka ($24.4 million) and help plug a budget gap.

The sale is part of the government’s plan to sell stakes in a number of companies this year to raise money to plug a hole in its budget.

The auction of 511.477 shares will be carried out via the Sarajevo Stock Exchange (SASE) at a price of 83.50 marka per share, the SASE said in a statement on Thursday.

The government kicked off its privatisation programme in June with the sale of a minority stake in the top insurer Sarajevo Osiguranje but failed to attract any bidders. A sale of its 19 percent stake in generic drugmaker Bosnalijek last month was also unsuccessful.

The government has said it would try again to sell stakes in the two companies, as well as its stakes in aluminium smelter Aluminij Mostar and engineering firm Energoinvest

FDS’ shares traded at 54.33 marka on Thursday, 1.42 down from Wednesday’s close. The company has a market capitalisation of 69.6 million marka.

1$ = 1.75 Bosnian marka Reporting by Daria Sito-Sucic; Editing by Susan Thomas

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