Montenegro accelerates takeover of A2A shares in EPCG

Montenegro accelerates takeover of A2A shares in EPCG

Photo: www.epcg.com


April 18, 2018






April 18, 2018





The Government of Montenegro intends to increase the ownership in public power utility Elektroprivreda Crne Gore (EPCG) in May from 57,01 to 70,16%, instead of initially planned 63%.

This is envisaged by the Proposal of the Contract on the execution of put option, which the Montenegrin Government adopted and submitted it to the National Assembly, without holding the session and on the basis of the obtained opinion of the majority of its members.

According to the Government statement, in addition to acquiring two-thirds ownership and adequate shareholding rights, the state is already restoring its ownership stake in EPCG to the level before the partial privatization and capital injections in 2009, when the Italian company A2A became co-owner.

“The proposal envisages that, instead of the first tranche of EUR 35.7 million for 7,826,438 shares, the state will pay EUR 68.9 million for 17,252,885 shares, and will increase the ownership from 57.01 to 70.16% instead of, initially planned 63%”, the Government announced.

The remaining shares will be repurchased by EPCG and by the state through the buyback scheme, in accordance with the Companies Law.

The Government of Montenegro said that in comparison with the basic version of the contract from August 2016, the new one accelerates three times termination clause, creating preconditions for drafting the development and investment plans in the EPCG, but also achieving significant financial savings of EUR 20 million.

At the beginning of June 2017, the Italian company A2A decided to sell its stake in the 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 installments starting May 1, 2018.

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

Third utility-scale solar power plant to be installed in Herzegovina etmax

Third utility-scale solar power plant planned to be developed in Herzegovina

17 September 2021 - The Government of the Republic Srpska decided to initiate the procedure for granting a concession for the Nevesinje PV plant.

eps e3 international energy crops EPS to burn biomass in coal power plants

EPS piloting mixing biomass with coal in its thermal power plants

17 September 2021 - State-controlled power utility Elektroprivreda Srbije (EPS) has launched a pilot project with US company E3 International

Romania Oltenia switch coal solar power proceeds CO2 permits

Romania’s Oltenia to switch from coal to solar power using proceeds from CO2 permits

16 September 2021 - Romania hopes to get most of the EUR 671 million for solar power plants in coal complex CE Oltenia from the EU's Modernization Fund

undersea power cables connect Europe Africa

Several undersea power cables about to connect Europe with Africa

16 September 2021 - Greece and Egypt are in talks about the possibility to lay a 2 GW submarine interconnector on the bottom of the Mediterranean Sea