Energoprojekt Holding is set to leave the Belgrade Stock Exchange after shareholders approved its delisting following the consolidation of ownership by a consortium led by Napred razvoj. The move ends decades of public trading for one of Serbia’s best-known engineering groups and comes amid declining financial results and questions over the valuation of the state’s former shareholding.
The consortium increased its ownership to 90.21% after the Serbian government sold its 33.89% stake, allowing the new controlling shareholder to initiate the compulsory acquisition of the remaining minority shares.
The squeeze-out was conducted at 452.25 dinars per share, equivalent to approximately €3.85, compared with a previous takeover offer of 1,501 dinars per share. The source also cites an offer price of 425.25 dinars in its calculation of the state’s stake, creating a discrepancy between the two reported figures.
Based on the cited 425.25-dinar price and the company’s published share count, the government’s holding had an indicative value of approximately €13.3 million. This is an estimate derived from publicly reported offer terms, rather than a separately verified amount received by the state treasury.
State shareholding sale raises valuation questions
The government’s disposal of its 33.89% holding represents a central part of the ownership restructuring. The difference between the reported transaction price and the earlier takeover offer raises questions about the methodology used to assess the value of the state’s stake.
A valuation of a minority holding in a listed engineering company can draw on market prices, discounted cash flow, comparable-company analysis and the underlying value of corporate assets. The results depend on profitability, future contracts, debt obligations and governance conditions.
Energoprojekt also owns substantial real estate and operates subsidiaries with different business models and financial profiles. A comprehensive valuation would therefore need to consider consolidated earnings, outstanding contracts, receivables, property values, financing obligations and the prospects for restoring operating profitability.
The ownership consolidation follows a gradual accumulation of shares by Napred razvoj, which secured controlling influence through an earlier takeover and expanded its position over subsequent years. The latest transaction completes that process and gives the controlling shareholder greater flexibility to reorganise subsidiaries, restructure operations and determine investment priorities.
Delisting also removes the company from the disclosure framework associated with listed-company status, reducing the public information available to investors, creditors, contractors and potential business partners.
Takeover process was subject to regulatory dispute
The acquisition history includes a legal dispute over the earlier takeover procedure. Serbia’s Administrative Court overturned a decision by the Securities Commission approving the previous takeover process and returned the matter for reconsideration. The ruling followed legal challenges by former Energoprojekt executives who questioned aspects of the transaction. The Securities Commission subsequently intervened in the implementation of the compulsory share acquisition.
The court’s decision did not automatically invalidate all ownership transactions completed previously. The regulatory review remains relevant to the assessment of the earlier approval procedure, but it does not constitute a final judicial finding that the current controlling shareholder lacks lawful ownership. The case highlights the importance of transparent takeover procedures, consistent regulatory decisions and minority shareholder protections, particularly when transactions involve controlling shareholders and related companies.
Profit falls 70% as domestic revenue contracts
The delisting comes as Energoprojekt reports a substantial deterioration in its financial performance. Operating revenue reached approximately 3.5 billion dinars (€29.8 million), down from around 5.3 billion dinars (€45.1 million) in the comparable reporting period.
Net profit declined from approximately 1.4 billion dinars to 433 million dinars, a reduction of roughly 70%.
Domestic sales recorded a sharper contraction, falling from approximately 4.3 billion dinars to less than 850 million dinars. Revenue from international operations remained considerably more stable at approximately 2.5 billion dinars.
The figures point to a growing dependence on foreign engineering and construction contracts. Among its international operations, Energoprojekt Entel continues to work on projects in Qatar, Abu Dhabi and Oman. In Serbia, group companies remain involved in activities related to hydropower engineering, construction, real estate and industrial infrastructure.
The group’s performance depends on maintaining a continuous pipeline of contracted work. Revenue can fluctuate when major projects are completed without replacement orders, while payroll, technical expertise and administrative expenses remain relatively fixed. The decline in domestic sales therefore places greater emphasis on project acquisition, contract execution and the group’s ability to sustain its operating capacity.
Engineering operations face commercial restructuring challenges
Energoprojekt’s future performance will depend on its ability to retain technical expertise, secure profitable contracts and manage delivery risks across its specialised business units. International engineering projects offer access to major energy and infrastructure markets but also involve risks related to client payments, contract variations, performance guarantees, project delays and foreign-exchange exposure.
In construction and infrastructure, profitability is affected by procurement efficiency, subcontractor management, equipment utilisation and the handling of additional works and contractual claims. Companies operating across energy, civil engineering and industrial projects must also coordinate design, construction, supervision and commercial management.
Potential restructuring measures could include rationalising underperforming activities, strengthening higher-margin engineering services and improving oversight of contract profitability. Energoprojekt’s international project references remain an important commercial asset, particularly when major energy and infrastructure clients seek experienced engineering contractors. However, its historic market position does not guarantee future competitiveness, which will depend on new contracts, execution capacity and financial performance.
BELEX15 loses another established corporate issuer
Energoprojekt’s departure will leave the BELEX15 index with only eight constituents, reducing the number of established companies available to public equity investors.
Serbia’s capital market already faces limited liquidity, a relatively small number of major listed companies and restricted participation by institutional investors. The withdrawal of another recognised issuer further narrows the range of domestic businesses available for public investment. The development comes as Serbia pursues substantial investment in infrastructure, energy and industry, sectors that require long-term financing. Yet the domestic stock market offers relatively few opportunities for investors to provide equity capital to companies participating in these activities.
Private ownership is not inherently less efficient than listed ownership, but a market with a limited number of issuers faces challenges in attracting investment funds, supporting price discovery and establishing transparent corporate valuation benchmarks.
Energoprojekt’s future will now depend primarily on its controlling owners and the commercial performance of its engineering businesses, while public investors lose access to one of Serbia’s most established engineering and construction groups.
