10. Jul 2016
Marjanović Law team, in collaboration with KPMG Serbia, acted as a lead legal counsel of the Government of Serbia in privatization of Železara Smederevo, now HeSteel Serbia.
The privatization procedure started in 2014 and we first represented, together with KPMG Serbia, the Government of the Republic of Serbia during its strategic partnership agreement negotiations with US steel producer Esmark Inc. with the two sides failing to agree on the commercial terms of the potential strategic partnership. The subsequent step in the privatization effort supported by the KPMG and Marjanović Law teams was the negotiations between the Republic of Serbia and HPK Engineering B.V. which resulted in the latter being appointed to run the steel mill until publishing a new privatization. Finally, Marjanović Law and KPMG Serbia assisted the Serbian Government during negotiations for the asset sale and purchase agreement with HeSteel China – one of the largest steel producers in the world.
The privatization of Železara Smederevo was performed as an asset deal. The purchase price achieved within the public tender procedure was EUR 46 million, with the buyer further promising to invest over EUR 300 million within the next five years.
The privatization was successfully finalized on 30 June 2016. This is one of the biggest transactions in Serbia nowadays, and the project was quite important and challenging. We have provided, and continued to provide the client with comprehensive legal services and succeeded in solving the most complex and demanding legal problems during and after the transaction.