ZAGREB, April 19 (Hina) - The Croatian Government on Thursday endorsed a decision that the Sibenik-based 'Tvornica Lakih Metala' (TLM) should be sold to a majority domestic consortium and that the Split-based Ironworks should be sold to Poland's Zlomrex.
At its closed-door session today, the Ivo Sanader Cabinet decided on approving last week's decision made by the Croatian Privatisation Fund (HFP).
In compliance with the government's decision, the TLM light metal smelter will be taken over by the consortium consisting of four Croatian companies: Dalekovod, Konstruktor Inzenjering, Zagreb-Montaza and AluFlex Pack from Zadar - and Feal from Siroki Brijeg, Bosnia-Herzegovina.
The consortium undertook to invest a total of 107 million euros in the TLM and to retain all 1,400 TLM workers on the payroll in the next three years.
The new owner of Split Ironworks is the Polish Zlomrex as it offered the highest price per share (or 10.11 million kuna). The new owner has pledged to invest 200 million kuna and to cover the ironworks' debts in commercial banks in the amount of some 165 million kuna.
The Lithuanian business group UBIG stated two days ago that it had appealed with EU institutions against the decision of the HFP to choose the Croatian consortium as the best bidder in the privatisation of the Sibenik factory, claiming that its bid was better.
The group sent letters to a number of EU institutions pointing to what it called the HFP's non-transparent decision, and notified diplomatic circles.
The letter with the complaint was also sent to the Croatian president, the prime minister, the World Bank Office in Croatia, the IMF representative for Croatia, the Croatian Competition Agency, and the Lithuanian government.
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