The High Court in Podgorica has decided to unblock shares of Italian company A2A in Montenegrin power company, Elektroprivreda Crne Gore (EPCG). The court previously blocked the shares of A2A over a proceeding against several former EPCG managers.
Montenegrin media reported that the chamber presided over by the president of the Higher Court in Podgorica, Boris Savić, has overturned earlier decision, thus abolishing the temporary measure of blocking the shares.
The Court blocked A2A’s shares this summer at the request of the Special Prosecutor’s Office, which in April 2016 launched an investigation against six EPCG managers on suspicion of misuse of official position and damaging the company for millions of Euros in favor of the Italian companies A2A, A2A Reti Elettriche and BAIN Milano.
A2A appealed court’s decision.
The investigation was initiated on the basis of documents submitted by the Parlament’s Committee on Economy in October 2014, after a control hearing on EPCG’s consulting contracts.
According to the documentation, contracts on consulting services signed by EPCG with A2A, A2A Reti Elettriche and BAIN Milano were concluded without public procurement procedure and mandatory decisions of the Board of Directors. Consulting services, according to the Montenegrin press, were worth around EUR 15,000,000.
Montenegrin officials said earlier that the court’s decision to block A2A shares will not jeopardize the takeover procedure launched in early July.
A2A officially launched the withdrawal procedure, after its contract expired on July 1, offering to the Government of Montenegro to take over its 41.7 percent of EPCG shares for EUR 250 million and to pay it in seven annual installments, as defined by the Put Option.