Electricity

Government of Montenegro pays EUR 15 million for additional stake in EPCG

Government Montenegro pays EUR 15 million additional stake EPCG

Photo: EPCG

Published

September 23, 2022

Country

Comments

0

Share

Published:

September 23, 2022

Country:

Comments:

0

Share

The Government of Montenegro bought an additional 2.8% stake in Elektroprivreda Crne Gore (EPCG) at today’s auction at the Montenegro Stock Exchange.

State-owned coal and power producer EPCG offered 10% of its own stock today at an auction. The Montenegro Stock Exchange said the government bought 2.8% or 3,34 million shares for EUR 4.49 apiece, which was the starting price.

The transaction was worth EUR 15 million in total and the rest of the package remained unsold. The government earmarked the funds yesterday. Earlier it approved the company’s request to offer the stake for sale at the national stock exchange, following two unsuccessful tenders.

The deadline for the sale of the shares, owned by EPCG itself, expires on September 26. It is obligated under law to write off the remaining stock. It means the government would own 99% of the company.

Minister Damjanović: Writing off the shares would cause damage to Montenegro

Minister of Finance Aleksandar Damjanović said yesterday that the price of EUR 4.49 per share is much lower than in previous sales. He pointed out that the government is improving EPCG’s liquidity this way.

With the latest move, the government also prevented the sale of the 10% stake to another bidder as it would enable them to enter into ownership and get a board seat in EPCG, which means they could block the government’s strategic decisions about the company, in his words.

Writing off the shares would cause indirect damage to Montenegro, he asserted.

Outgoing Prime Minister Abazović earlier said EPCG should buy the troubled Željezara steel plant in Nikšić from Turkish company Tosçelik. The share auction was envisaged for raising funds for the acquisition.

EPCG dropped 2.56% today to EUR 3.6 apiece at the exchange’s free market segment, translating to EUR 414 million in market capitalization. The book value is almost two times higher.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Serbia EPS no longer dependent on imports acting CEO Tomasevic

Serbia’s power utility EPS no longer dependent on imports, acting CEO claims

27 January 2023 - EPS is importing much less electricity this winter than last one and it is not dependent on imports, acting CEO Miroslav Tomašević said

Second unit of Krško nuclear power plant projected to come online in 2035

27 January 2023 - The second unit in the Krško nuclear power plant could be in operation in 2035, but project permits are still pending

Household solar power systems overload Cyprus electricity grid

Household solar power systems overload Cyprus electricity grid

27 January 2023 - The distribution and transmission system operators in Cyprus asked for a freeze in issuing licenses for small solar power installations for self-consumption

cwp montechevo solar montenegro

CWP enters Montenegrin renewables market with 400 MW solar project

26 January 2023 - The investment is valued at around EUR 360 million, while the development and construction of the project are planned in phases