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Authorities auction public property for 2nd time in 2012

26 june 2012, 15:11 print out copy link The link has been copied to the Clipboard

The second auction since the beginning of the year on selling parcels of government-owned stocks in enterprises was launched at the Moldova Stock Exchange (MSE) on Tuesday.

According to the Public Property Agency (PPA) that organized the auction, parcels of 27 joint-stock companies are offered for sale at a total initial price of 930 million lei.

Almost all parcels have been already offered for sale for several years running, but unsuccessfully; therefore, initial prices were reduced by 0.01-50 lei per stock, as compared with the recent auction held in February.

Among the new offers, there are 95.8% stocks of the largest perfumery and cosmetic enterprise – Viorica-Cosmetic. At a face value of 11 lei, they are offered for sale at the initial prices of about 3 times as much per stock.

The PPA expects to get even more from the Farmaco stocks sale. Thus, 94.6% stocks of the largest drug producer are offered for sale for 1355 lei/stock, while their face value makes 37 lei.

The 100% parcel of stocks of the Armo-Beton ferroconcrete plant (Bacioi, Chisinau suburb) is also offered for sale. The initial price of stocks (at face value of 10 lei each) is offered for 55 lei. Additionally, the government expects to earn at least 162.9 million lei for 59.5% stocks of the Floare-Carpet carpet factory, which is 4.5 times more than its face value.

Infotag’s dossier: Last year, the public property privatization revenues reached 118.4 million lei (US$9.9 million), though in the beginning it was projected about 2.5 times as much – 280 million lei. However, the Parliament made amendments to the Budget in December, reducing them to 110 million lei. In 2010, denationalization revenues were expected within 430 million lei, but in fact they made less than 100 million lei. For 2012, the government expects to get 260 million lei from privatization, significantly reducing the list of state property objects that can not be subjected to privatization. At the first 2012 auction, the Public Property Agency succeeded in selling only government-owned parcels of stocks in 3 enterprises for less than 9.6 million lei. Altogether, the privatization revenues since the beginning of the year made somewhat more 41 million lei.

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