State power utility EPS seeks to become joint-stock company

The Supervisory Board of state power utility Elektroprivreda Srbije (EPS) has adopted a proposal of a decision to reorganize EPS into a joint-stock company. The proposal will be sent to the Government of Serbia.

The Supervisory Board of state-owned power utility EPS has adopted a proposal to change its legal form into a joint-stock company. As Nova ekonomija noted, EPS should propose this to the Government of the Republic of Serbia as its founder.

The reorganization would transform EPS’ capital into share capital, and the state would become the full owner of all 36,510,509 shares, Nova ekonomija reports. It also notes that EPS’ capital amounts to RSD 365 billion, of which the monetary contribution amounts to RSD 4.2 billion and the non-monetary contribution to RSD 360.9 billion.

Supervisory Board: EPS’ transformation into a joint-stock company is expected to ensure the maximum efficiency of operations

In the decision, the EPS Supervisory Board notes that the expected effects of EPS transformation into a joint-stock company are the maximum efficiency of operations, more efficient corporate governance, more rational use of human resources, and better conditions for market development.

According to the Supervisory Board, in 2014 the Government of Serbia accepted EPS’ reorganization program, which also envisages a change of its legal form to a joint-stock company, the article notes.

The Law on the right to free shares and cash compensation for citizens in the privatization process also stipulates that the government is obliged to provide EPS with a change of legal form.

Changing the legal form of public companies into joint-stock companies or LLCs is defined in the Strategy of State Ownership and Management of Business Entities Owned by the State from 2021 to 2027.

The Supervisory Board also proposed amendments to EPS’ founding document, as well as articles of association of the future joint stock company, the Nova ekonomija reported.

EPS’ restructuring into a joint-stock company was also announced in 2020. At the time, the Government of Serbia led the initiative and informed the International Monetary Fund (IMF) that it would transform EPS with the help of the European Bank for Reconstruction and Development (EBRD).

Since 2014, state officials have been announcing that EPS could change its status to a joint-stock company.