Objectives of the Privatisation Agency of Kosovo
A major objective of the PAK is to privatise SOEs. The Agency plans to carry out successfully the privatisation process through spin-off or voluntary liquidation. The PAK will use a transparent and fair process for the programme and to put into productive use the assets of the SOEs for the benefit of Kosovo and potential owners.
Methods for Privatisation of the SOEs (Socially Owned Enterprises)
The PAK can create a new company (newco) in the form of a Joint Stock Company or a Limited Liability Company and transfer to these new companies part or all of the assets of the old socially owned enterprise. Liabilities of the old enterprise would not be transferred but remain with the old enterprise.
Shares in the new corporation would temporarily be owned by the old enterprise that would thus turn into a holding company, fully administered by the PAK. The PAK also holds the shares in trust for the old enterprise while creditors of the old enterprise could bring their claim to an Special Chamber of the Kosovo Supreme Court.
The PAK sells the newco shares it holds in trust to private investors, both domestic and foreign. Proceeds would be held in trust by the PAK, without prejudice to ownership or creditor claims against the old enterprise.
In making these exchanges the PAK is committed to conduct its transactions in a transparent and competitive manner in order to ensure that a fair price is received. The PAK may in addition to the price also take into account proposed activities, investment and employment as foreseen by any prospective investor. Thus, the value of the old SOEs is preserved to satisfy possible creditors and owners claims.
Voluntary Liquidations allow an expeditious exit from the market for those enterprises that clearly have no prospects of survival. The PAK can initiate such proceedings where it deems the proceedings are in the interests of preserving the remaining value of defunct enterprises, and of any ownership or creditor claimants interest in those. The proceedings would be largely out of court and would primarily follow the procedures for liquidation found in the Regulation on Business Organisations. Again, proceeds of liquidations are kept in trust by the PAK.