Croatian Firm Pliva To Be Privatized

The Croatian government is to privatize its largest drug company, Pliva, as part of a more general state program of privatization. 30% of the shares are to be offered to foreign investors worldwide. The current stakeholders are the state privatization fund, the CPF, with 52.02%, the state pension fund for industrial workers with 21.99%, the agricultural workers' pension fund with 9.43%, and smaller shareholders hold the remaining shares.

Following completion of the share offer, it is understood that the European Bank for Reconstruction and Development will acquire new shares to the value of nearly $42 million so that over half Pliva's share capital will then be in private hands. The shares will be listed in London and Zagreb, and the offer will be coordinated by Schweizerissche Bankgesellschaft and Zagrebaca Banka. The operation is expected to be completed in the first six months of the current year.

Pliva posted sales of around $375 million for 1995, with pretax profits of some $85 million. Human pharmaceuticals accounted for around 71% of total sales.