Bosnian Serb Authorities Approve Direct Sale of Orao Stake to Glotek-Led Consortium
Authorities in Bosnia and Herzegovina's Republika Srpska entity have approved the sale of a 30% state-owned stake in aerospace company Orao through direct negotiations with a Glotek-led consortium.
The National Assembly of Republika Srpska, one of Bosnia and Herzegovina's two entities, has approved a government proposal to sell a 30% state-owned stake in aerospace and defense company Orao a.d. Bijeljina to a consortium represented by Belgrade-based Glotek through direct negotiations rather than a public tender.
According to the Ministry of Economy and Entrepreneurship of Republika Srpska, the consortium's proposal is valued at KM 13.09 million. The package includes KM 1 million for the acquisition of the shares, KM 3.09 million to settle the company's existing liabilities, and KM 9 million in investment commitments over the next three years.
The consortium consists of Glotek Ltd B.V.I. from Singapore, Glotek International AG of Switzerland, Glotek d.o.o. Belgrade, and Glotek from Herceg Novi. Entity officials said the investor committed to preserving Orao's existing workforce of 331 employees while modernizing production capacity and expanding business operations.
Under the proposed agreement, the investor would finance the modernization of production facilities, maintain the company's core aerospace activities, and provide annual bank guarantees to secure the planned investments. Officials also stated that the consortium intends to strengthen Orao's position in aircraft engine production, overhaul, and maintenance.
Orao is one of Bosnia and Herzegovina's most significant aerospace and defense industrial companies, specializing in aircraft engine maintenance and manufacturing. Entity authorities noted that cooperation between Orao and companies within the Glotek group has expanded in recent years, with Glotek-related contracts accounting for a substantial share of the company's revenue.
The decision to proceed through direct negotiations instead of a public tender prompted criticism during the parliamentary debate. Opposition representatives questioned the transparency of the process and the valuation of the strategic asset, while the government argued that the selected model offers the best opportunity to secure long-term investment, preserve industrial capacity, and support future development of the company.
The transaction remains subject to the completion of the contractual procedures outlined in the approved proposal.
