[Intl-tobacco] Serbia sees tenders for cigarette plants mid-March

[Robert Weissman]

URL: http://biz.yahoo.com/rc/030205/tobacco_serbiamontenegro_1.html


Reuters
Serbia sees tenders for cigarette plants mid-March
Wednesday February 5, 11:46 am ET

BELGRADE, Feb 5 (Reuters) - Serbian Privatisation Minister Aleksandar
Vlahovic said on Wednesday he expected the imminent adoption of a
tobacco law to clear the path to call tenders for two cigarette plants
by mid-March.

"Now that the law is in parliament, it will soon be
adopted and after that we shall call a tender," Vlahovic
told reporters.

He said that after adoption of the law, financial advisers
had to assess the value of the plants, hence
mid-March.

Major tobacco players are seeking to position
themselves in the Balkan country as the reformers who
ousted Slobodan Milosevic in 2000 crack down on
illegal tobacco trade and try to keep lucrative cigarette
sales out of the underground economy.

Two plants in southern Serbia - Duvanska Industrija NIS
(DIN) and the smaller Duvanska Industrija Vranje (DIV)
-- are expected to be put on sale after the law is
adopted.

Presenting the law in the assembly on Wednesday
Serbian Finance Minister Bozidar Djelic said it would
regulate the industry which is a condition for any bigger
investor to enter.

The Serbian Privatisation Agency has said British
American Tobacco (London:BATS.L - News), Philip
Morris (NYSE:MO - News), Japan Tobacco International
(Tokyo:2914.T - News), Imperial Tobacco Group
(London:IMT.L - News) and others have expressed interest to enter Serbia.

Djelic said cigarette smuggling in 2002 had been reduced by 60 percent
and the law would do more towards stemming it out. He said the law would
also support the domestic industry and provide control of cigarette
sales and production.

"All those who want to be in the industry have to meet certain financial
and technical conditions," he said, adding there would be no monopolies.