December 20, 2017
December 20, 2017
The Government of Montenegro intends to buy shares of the Italian company A2A in power utility Elektroprivreda Crne Gore (EPCG) with the support of a financial institution, as well as to hire a legal advisor for assistance in privatization, Montenegrin media reported.
Montenegrin Government has a stake of 51% in EPCG while A2A owns 41%.
The Ministry of Economy recently announced that it is considering options that would accelerate the withdrawal of the Italian A2A from the EPCG’s ownership structure, and that talks with several potential investors, or financial institutions, are underway.
“The options for accelerated A2A exit from the EPCG, which would not additionally burden the public finances, are under consideration. The government intends, with the support of the selected financial institution, to consider the possibility of defining a more favorable model for buying A2A shares compared to one defined by put option,” the Montenegrin media reported.
Ministry officials said that negotiations with several financial institutions are underway.
The Ministry intends to publish public procurement notice for legal advice services for the EPCG privatization process.
In early July, the Italian company A2A informed the Government of Montenegro about activating the put option, which officially launched the process of the company’s withdrawal from EPCG’s ownership and management structures.
In 2009, A2A paid EUR 436 million for 43.7% stake in EPCG.
The put option is defined by a shareholder agreement between the Government and A2A and foresees the sale of A2A shares in the EPCG for EUR 250 million in seven annual installments as of May 1, 2018.
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