DZI TURNED OUT TO BE YET ANOTHER PRIVATIZATION FIASCO
Within two or three weeks we will know whether DZI deal will be finalized, said to the Banker weekly one of the members of the Working group for the privatization of the State Insurance Company (DZI), formed within the Privatization Agency. We expect that within this timeframe the Competition Protection Commission will be able to inform us about its judgement whether the only offer, placed by TBI and DZI-2000 violates in any aspect the Competition Protection Law. Only after that we will be able to open the offer itself, added the PA expert.
The big expectations, cherished by the governemnt, seem to have been in vain. Just one of the expected potential buyers of DZI placed an offer for purchasing a part of the state insurer. Till the closing - 5.30 p.m. on February 5, 2001 - the only offer received at the PA was the one placed by TBI, the Dutch financial holding.
DZI privatization procedure was initiated in November 1999. A year later - in September 2000 - the state managed to set up and announce the conditions for participation in the privatization. Ten companies bought the information memorandum for DZI privatization. Just three of them, however, sent their Letters of Intent. The term for placing offers for acquiring DZI shares has been postponed four times.
It is clear that TBI is interested in acquiring 67% of DZI. For the time being buyers do not disclose the price they are willing to pay. According to some sources, the state will request at least USD40MN for the share it is selling. In case the candidate does not agree on that price, there will be a new privatization procedure. Same will be the development in case the Competition Protection Commission judges that the deal violates the Competition Protection Law. According to some experts, whatever the reason, should there be a new deal, DZI is going to remain state property at least till the end of this year.