Germany's WAZ in surprise sale of stake in Serbian daily

BELGRADE The Balkans' oldest daily - Belgrade-based Politika - has had a new owner since Monday, July 16, it has been confirmed. 50 percent of the company's capital is now owned by East Media Group - a previously unknown company based in Moscow. Germany's WAZ in surprise sale of stake in Serbian daily According to the Serbian Business Registers Agency website, the share in Politika was sold by Austria's OST HOLDING GMBH. Politika Shareholder Society chair Zeferino Grasi says that he was not informed about the decision "to sell the WAZ stake in the company". WAZ is a German media group, which according to him, "announced early this year that they intended to sell their stake": "We were in correspondence with them, but the offer that they sent us was not satisfactory - to be more precise, it did not state whether we would be also taking over the obligations along with the acquisition. That story was not finalized, and now this happened." Politika's new owner is unknown in Serbia. Russian business websites say that East Media Group was founded in of January this year, and is owned by one Uros Stefanovic. Reactions followed swiftly on Tuesday as the news broke about the sale, with the Serb Progressives (SNS) - about to form a ruling coalition in Serbia - saying it was "disgraceful and scandalous" that the takeover happened "overnight, without anyone knowing, in a non-transparent manner". They accused their rivals and a former ruling party, the Democrats (DS), of attempting to "suffocate media freedoms in Serbia". The United Regions of Serbia (URS) also made a statement on Tuesday afternoon to say that it was the Democratic Party that was "behind the sale". However, the DS issued a release of its own to deny these claims, and describe them as "dangerous for democracy". The Association of Journalists of Serbia (UNS) said they were "shocked" to learn the news, and referred to the transaction "secretive and scandalous". This organization noted that Politika is regarded as "an important Serbian institution", and that the state for that reason held on to a 50 percent stake in its ownership structure, as well as "the golden share in editorial and publishing business". The state also enjoyed the right of first refusal in case WAZ sold its share in the company, according to this. The UNS now wants the outgoing government to "inform the public in detail about all the circumstances of this scandalous transaction". WAZ announced in mid-2010 that they intended to withdraw from all their operations in Serbia, and cited dissatisfaction with business conditions in the country. Late last year, the Liberal-Democratic Party (LDP) asserted that the Belgrade tabloid Kurir "received money from the state to buy the WAZ stakes in Politika, Vecernje Novosti and Dnevnik". The UNS, meanwhile, is speculating that East Media Group has connections with Miroslav Bogicevic - one of the Democratic Party (DS) financiers - and that there had been "hints for months that he would be precisely the person to finance the acquisition of Politika". Bogicevic owns MB Farmakom Concern, that incorporates Sabac Dairy, Battery Factory Sombor, and several mines. B92 Beta Tanjug

Germany's WAZ in surprise sale of stake in Serbian daily

According to the Serbian Business Registers Agency website, the share in Politika was sold by Austria's OST HOLDING GMBH.

Politika Shareholder Society chair Zeferino Grasi says that he was not informed about the decision "to sell the WAZ stake in the company".

WAZ is a German media group, which according to him, "announced early this year that they intended to sell their stake":

"We were in correspondence with them, but the offer that they sent us was not satisfactory - to be more precise, it did not state whether we would be also taking over the obligations along with the acquisition. That story was not finalized, and now this happened."

Politika's new owner is unknown in Serbia. Russian business websites say that East Media Group was founded in of January this year, and is owned by one Uroš Stefanović.

Reactions followed swiftly on Tuesday as the news broke about the sale, with the Serb Progressives (SNS) - about to form a ruling coalition in Serbia - saying it was "disgraceful and scandalous" that the takeover happened "overnight, without anyone knowing, in a non-transparent manner".

They accused their rivals and a former ruling party, the Democrats (DS), of attempting to "suffocate media freedoms in Serbia".

The United Regions of Serbia (URS) also made a statement on Tuesday afternoon to say that it was the Democratic Party that was "behind the sale".

However, the DS issued a release of its own to deny these claims, and describe them as "dangerous for democracy".

The Association of Journalists of Serbia (UNS) said they were "shocked" to learn the news, and referred to the transaction "secretive and scandalous".

This organization noted that Politika is regarded as "an important Serbian institution", and that the state for that reason held on to a 50 percent stake in its ownership structure, as well as "the golden share in editorial and publishing business".

The state also enjoyed the right of first refusal in case WAZ sold its share in the company, according to this.

The UNS now wants the outgoing government to "inform the public in detail about all the circumstances of this scandalous transaction".

WAZ announced in mid-2010 that they intended to withdraw from all their operations in Serbia, and cited dissatisfaction with business conditions in the country.

Late last year, the Liberal-Democratic Party (LDP) asserted that the Belgrade tabloid Kurir "received money from the state to buy the WAZ stakes in Politika, Večernje Novosti and Dnevnik".

The UNS, meanwhile, is speculating that East Media Group has connections with Miroslav Bogićević - one of the Democratic Party (DS) financiers - and that there had been "hints for months that he would be precisely the person to finance the acquisition of Politika".

Bogićević owns MB Farmakom Concern, that incorporates Šabac Dairy, Battery Factory Sombor, and several mines.