30 PERCENT OF ORAO SHARES SOLD, COMPANY RECAPITALIZATION INVOLVED

BANJA LUKA, MAY 28 /SRNA/ – The Republika Srpska Government has decided to sell 30 percent of the state-owned shares in the Bijeljina-based company “Orao”, valued at BAM 1 million, Republika Srpska Minister of Economy and Entrepreneurship Radenko Bubić said today.

Bubić explained that a consortium led by "Glotek" approached the Government and offered to assume "Orao" liabilities, amounting to approximately BAM 3.1 million, emphasizing that investments totaling BAM 9 million are planned over the next three years.

He noted that there is a declining demand for the engine overhaul services performed by "Orao" and that new investments are required in order for the company to adapt to new business activities.

"The investor has committed to maintaining the technological processes and the current number of employees, hiring additional workers in the future, and investing in new facilities," Bubić said at a press conference following parliamentary session.

"Orao" director Marko Mrkajić stressed that this is not a privatization, but rather a recapitalization of the company, and said he supports the Government’s decision.

"This is a company with which `Orao` has cooperated for 30 years, and which, during the company’s most difficult period, provided EUR four million to keep `Orao` operating," Mrkajić said.

He added that this now makes it possible to acquire licenses from a Canadian company for helicopter engine overhauls, and that a dedicated production facility for those operations should be established by the end of the year.

Mrkajić also noted that new markets have been opened, one of them being India.