SNC Lavalin Eyes Energoprojekt, Serbia to Divest Stake, CEO Says

SNC-Lavalin Group Inc. (SNC), a Canadian engineering, construction and manufacturing company, is among three companies interested in Energoprojekt Holding AD, the Serbian company’s chief executive officer said.

Serbia’s government, which currently controls 33.6 percent of the Belgrade-based Energoprojekt, “does not intend to keep the stake long-term, maybe not even mid-term” and contacts with potential buyers are underway, Vladimir Milovanovic said, naming only SNC-Lavalin as “the biggest and most serious” of potential buyers.

“There are many aspects to consider, primarily compatibility of operations and synergy” as SNC-Lavalin and Energoprojekt overlap on some foreign markets, Milovanovic said today at a meeting with investors in Belgrade. Energoprojekt’s core businesses are construction and energy and it runs operations in 22 countries in Europe, the Middle East, Africa and South America.

The Serbian company has opened a data room on its performance and activities for potential investors “but we don’t expect that a sale would be completed this year” Milovanovic said.

The Energoprojekt Holding comprises seven core and two non- core companies with 2,650 employees in Serbia and in its units abroad. Its other activities include urban planning, industrial development, information technologies, trade, real estate and insurance.

The company’s current contracts total 350 million euros ($500 million) and it expects to close new ones this year worth 275 million euros, the CEO said.

Energoprojekt’s consolidated sales rose 10.42 percent last year to 228 million euros with pre-tax profit falling nearly 30 percent to 8.74 million euros.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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