March 27 (Bloomberg) -- Serbian state-owned gas monopoly Srbijagas sold its 63.6 percent stake in Srpska Fabrika Stakla AD to Rubin AD, a Bulgarian glassmaker, for 35 million euros ($46.7 million).
The acquisition is backed by Bulgaria’s Corporate Commercial Bank AD, Srbijagas general manager Dusan Bajatovic said at a news conference in the capital Belgrade today after signing the contract.
The Bulgarian buyer will invest an additional 22 million euros over the next year to expand production of glass packaging, mainly beer bottles in the facility in Paracin, 155 kilometers (96 miles) south of Belgrade. It plans to triple the output within a year to an annual 120,000 tons of glass.
Rubin is also taking over Srpska Fabrika Stakla’s 10 million-euro debt to Serbian lender Agrobanka AD and to the Serbian unit of Hungary’s OTP Banka, he said.
The company plans to dismiss some of its 1,700 workers offering those who want to leave 300 euros per each year of past service, Bajatovic said. The dismissals will cost an additional 4.5 million euros, with the government contributing 50 percent.
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