Montenegro: Power state utility company shareholders ownership changes, A2A vs Gov

Published on 7. April 2014., SEE Energy News

Model of the plan of conversion of claims in the shares, as defined by the Law on the budget,  it was proposed according the idea of strategic partners in EPCG, A2A. After completing of the transaction, the state of Montenegro would have 56.96 percent of share capital in EPCG, A2A would have 41.7 percent and minority shareholders 1.34 percent shares. The state now has a 55 percent stake, while A2A has  43.7 percent.

A general attitude of the Government in relation to a new model of the state conversion of claims of the Power utility EPCG in share capital is a technical modification that leads to the same result, according to Minister of Economy, Vladimir Kavaric.

After session of the Government, he said that this modification, which will increase state ownership in EPCG at 56.96 percent, will lead to the same number of shares for the debt level which having been taken over.

“From this aspect the Government will address to the Parliament for approval, and we will see what will be its attitude about this issue,” Kavaric added .

He said that the issue of debt repayment of  EPCG has already been elaborated in public.

“We have a budget guideline that proposes certain way, and on the other hand, we have EPCG proposal as someone who is an inevitable participant in this process, because recapitalization is a two-way process that should be carried out from the aspect of debtor and creditor,” explained Kavaric.

When asked how ministers from the Social Democratic Party, SDP, voted, because of the earlier announcements that they did not agree with that, Kavaric replied that there was no voting about the issue when they decided, which was a unified attitude of all ministers in the Government.

“This is the way of solving process which enable that the result  in the end of the process be as Parliament has predicted; no one’s vote has not produced assumption how will Parliament decide on the matter,”  Kavaric added .

Model of the plan of conversion of claims in the shares, as defined by the Law on the budget,  it was proposed according the idea of strategic partners in EPCG, A2A.

After completing of the transaction, the state of Montenegro would have 56.96 percent of share capital in EPCG, A2A would have 41.7 percent and minority shareholders 1.34 percent shares.

The state now has a 55 percent stake, while A2A has  43.7 percent.

The energy projects which are in the phase of realization for which have not adopted a new decisions, were considered at the session of the Government , said Mr. Kavaric.

He recalled that in connection with the construction of the second thermal power plant Pljevlja, the Board of Directors of EPCG selected three best offers, and the Government as majority owner of EPCG expects that the energy company defines it as soon as possible; once when a final bidder is defined should start the process of project realization.

The activities of exploration of oil are in a quiet phase and they are related to the anticipation of the results of the tender or bidders who will participate in the tender.

Every day we have visits in the data room and a lot of verbal announcement that we will have bidders, “said Kavaric.

On Thursday the Government approved the Draft Law on the efficient use of energy and Draft amendments to the Law on the system of internal financial control in the public sector and the Action plan arising from the strategy for the implementation of the system of internal financial control in the public sector.

Source; Serbia Energy See Desk