Montenegrin Minister of Economy Dragica Sekulic said that with 70 million euros allocated in the state budget for this year, the Government intends to pay two installments for the purchase of the stake of Italian company A2A in Montenegrin power utility EPCG.
Minister Sekulic explained that with that funds, the Government will pay the first and most likely the seventh installment in order to increase the state‘s stake in EPCG to 69 %, adding that it was estimated that it is better the end the partnership in two years than to wait for full seven years to pass.
Through the budget rebalance, the Government has created a precondition to discuss the acceleration of put option with A2A. After A2A is lo longer in possession of EPCG‘s shares, the plan is to issue a public call and negotiate with potential strategic investors. The method of shares sale will depend on what the intentions of potential investor are. EPCG plans a lot of investments in the coming years, it is better to make them together with a strategic investor, but EPCG has means to fulfill its investment plans by itself, Minister Sekulic concluded.
Last July, Italian company A2A has offered its stake in power utility EPCG to the Montenegrin Government for 250 million euros. A2A submitted the put option notice in which it informs the Government that it intends to sell its entire stake in EPCG for 250 million euros. The amount is to be paid in seven annual installments starting at 1 May 2018. Press release from the Government said that by activating this option, the process of A2A‘s withdrawal from the EPCG ownership has officially started, adding that A2A has no right anymore to block decisions presented by the state.