Italian A2A appeals Montenegrin court’s decision to block its shares in EPCG

The Italian company A2A has appealed court’s decision to block its shares in the Montenegrin electric power company, Elektroprivreda Crne Gore (EPCG), Montenegrin media reported.

The High Court in Podgorica, which blocked the shares due to the procedure against several former managers of the company, has confirmed to daily Pobjeda that A2A has appealed the decision.

A2A announced that it had received a court ruling on July 25. “Such a measure, issued in connection with procedures related to group services, provided by A2A to the EPCG between 2010 and 2012, indicates that A2A itself would be subject to investigation”, the Italian company said in July adding that it has been analyzing possibilities to challenge the decision before judiciary.

The Court blocked A2A’s shares 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.

The investigation was launched against former EPCG Finance Director Flavio Bianko, ex-Executive Director Enriko Malerba, former Financial Director Massimo Sala, Chief Financial Director Slobodan Tanasijevic, Finance and Payroll Manager Vinka Janjusevic and Executive Officer Vojka Calasan.

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.