Privatization through tender and public auction

Selection of a privatization method depends on complexity of a business entity that is subject to privatization. The main elements assessed during selection of a method include the value of the company property, number of employees, structure, business activity, market coverage, etc.
On behalf of its clients, the Office has participated in privatization procedures during both auction and tender sales. The procedure and approach deployed by the Office depend on the method selected for a concrete subject of privatization, and always comprises a preparatory period, participation in purchase of the subject of privatization, and procedure following the actual purchase thereof.
Special teams are established for leading of the procedure of privatization, especially for:

The preparatory period comprises an analysis of all legal aspects on the company relevant to the future buyer, the Due Diligence. Legal expertise includes determination of the structure of the subject of privatization, state of claims and liabilities, an overview of owned property as well as existence of actual arrears, labour and juridical relations in the company related to remuneration of salaries and other earnings, and the possibility to carry out a social programme.
Participation in the purchase depends on the privatization method. In case of tender, it includes assisting in fulfilment of legal and technical conditions for participation in the procedure related to preparation of offer with supporting documentation, along with participating in tender committee sessions on the occasions of bid opening and ranking. In case of auction sale, the activities of the Office comprise application for participation in the auction, with the possibility of taking part in the auction itself in the name and on behalf of a client, and signing of social capital sales contracts.

The procedure following the actual purchase is a highly significant and complex process. Privatization of each subject has its own special characteristics, while new owners are faced with problems in terms of unresolved property and legal issues, liabilities on real estate, equipment, and other movable assets, as well as existing disorder in labour and juridical relations.
Once privatization is complete, the first priority is to structure the working and legal ambience requisite for normal functioning of a company, which includes adoption of a new collective agreement and supporting general legal acts in the field of Labour Law, and conclusion of employment contracts based on market principles. The Office possesses extensive experience in having the debts towards large systems and creditors previously incurred by privatized subjects reprogrammed under most favourable terms for the new owner.
The Office has participated in a succession of auctions in the fields of metal complex, mining, civil engineering, as well as textile, chemical, and foodstuff industries.