Ivan Šimić Withdraws from Purchasing KIM

Ivan Šimić has sent an official notice to the Management Board of the Croatian Privatization Fund that he is withdrawing from the purchase of KIM Dairy Karlovac d.d., after being given preference as a buyer over the Dutch Danube Foods on August 2. Although unwilling to make any statements to the media until the final resolution of the case, Šimić stated that the pressure on him has been enormous in recent days.

In arguing his claim that an unprecedented media lynching has been launched against him, Šimić emphasizes that the media have served various individuals as a communication channel to disseminate numerous lies about him and his business. In this regard, Šimić points out that no media outlet reported the fact that his Chemoderm had submitted an irrevocable guarantee from Karlovačka banka for 16.5 million kuna on June 8, along with the requested extended guarantees and offers, with an option until October 9.

Šimić’s withdrawal was preceded by a series of activities aimed not only against him but also against the model of borrowing shares of the company he intends to purchase with a loan based on those same shares, as well as the entire justification for such a decision by the HFP. Reminding of such a model in the first privatization of KIM by Miroslav Kutle and the Globus group, the PPDIV Union, several opposition parties, and after criminal complaints were filed, the case was taken up by the County State Attorney’s Office in Karlovac, almost unanimously requested the HFP to annul the decision to sell KIM to Šimić. By stating that the Minister of Economy and Entrepreneurship Branko Vukelić supported and advocated for the sale of KIM specifically to Chemoderm, Šimić indirectly dragged even Prime Minister Ivo Sanader back into the game, who, after the resolute demand for Vukelić’s resignation from the opposition, saving his minister for who knows how many times, stated that this Government would not allow the previously seen model of privatization by pledging shares for a loan to purchase them. In the following statement, in which he said that he had never spoken to Vukelić at all, that is, perhaps just once in passing, Šimić merely diverted the water to the mill of his opponents, but also to the public.

Of course, Danube Foods, which has already proven itself with successful privatizations and investments in dairy farming in Serbia, did not sit idly by, but requested the HFP to reconsider the decision to give preference to Šimić. Additionally, a third bidder, “Ranč” from Pribislavac, joined in with a criminal complaint, with the statement from owner Ivan Novak that the now detained vice presidents of the HFP in the “Maestro” operation had asked him for a bribe of 300,000 euros at the beginning of the tender for the purchase of KIM if he wanted to gain an advantage in selecting the buyer of KIM. Why Novak has remained silent about this until now is a question that remains unanswered for now.

In light of such a disastrous development of events surrounding KIM’s failed privatization, thoughts about KIM’s bankruptcy have finally begun to emerge, which had been persistently rejected and publicly stated over the past year, let alone, due to the enormous claims without which the banks would then remain, and to move towards a solution in that direction. Instead, a solution was chosen in which KIM, along with dairy products, has also become a factory of new losses. As the relationships and influences of power intertwine, it is difficult to predict whether and when an economically based solution will be attempted for KIM, especially with elections around the corner. (Mladen Volarić)