Kazakhstani Investor Acquired Serbian Railways Construction Company
Kazakhstan’s Zhol Zhondeushi Company LLP has purchased the Serbian company ZGOP a.d. (Novi Sad), the only company performing capital overhaul and construction of railways in Serbia, the Ministry for Investments and Development of Kazakhstan said.
The contract was signed in Belgrade on February 8, in the Ministry of Economy of Serbia, with the participation of the Serbian Minister of Economy Goran Knežević and official representatives of Zhol Zhondeushi Company LLP and ZGOP a.d.
The deal was a result of negotiations held in December 2016 between the President of Kazakhstan Nursultan Nazarbayev, the President of Serbia Tomislav Nikolić and the Prime Minister of Serbia Aleksandar Vučić that focused on the development of investment cooperation between Kazakhstan and Serbia.
This Contract will contribute to cooperation between the two states and support trade and economic relations between Kazakhstan and Serbia.
Currently the Kazakhstan company is embarking on a new path of development where its Serbian subsidiary, ZGOP a.d. Novi Sad, will play a major role. The newly-acquired company that has been undergoing restructuring since 2011 now employs 250 people. A number of Austrian, Russian, Chinese, French and Turkish companies also showed interest in acquisition of ZGOP a.d.’s shares. According to local experts, the business became attractive after Serbia had been granted international loans for rehabilitation of its railways, including a loan from the European Bank for Reconstruction and Development.
Zhol Zhondeushi Company LLP provides services in construction and rehabilitation of motor roads, implementation of transport and logistics infrastructure projects, including construction of runways and development of sea ports. The company employs over fifteen hundred specialists.
The company is opening up new perspectives in the markets of Russia, the Middle East, and Europe.