Tender commission rejects Damen Shipyards Group offer to buy Adriatic Shipyard as formally invalid

Podgorica, Montenegro (24 April 2014) – At yesterday’s session, tender commission for privatisation rejected the offer for the acquisition of 61.5% of the Adriatic Shipyard submitted by Damen Shipyards Group from the Netherlands.

The tender commission stated that the offer did not meet all the required elements prescribed by tender rules and regulations which, among others, include an offer for purchase of shares, bank guarantees, and acceptance of obligations related to implementation of the social programme. In that regard, the commission has rejected the offer by the Dutch company.

Damen Shipyards Group, highly respectable company in the industry of shipbuilding, repair of yachts and mega yachts, stated in its bid that they are not willing to buy the Adriatic Shipyards shares, but only its property, which was not the subject of this tender. Damen Company, in cooperation with Adriatic Marina/Porto Montenegro, intended to establish a new company and to offer EUR 5 million for Adriatic Shipyard’s property, but without accepting any commitments regarding social programme or fulfilling the obligations to suppliers and creditors.

The offer also stated that the newly established company would hire 100-150 employees in a transitional period of three years and at the same time the repair activity would be replaced with new business related to servicing yachts and mega yachts.

According to applicable procedures, the tender commission will submit a report on the tender outcome to the Council for Privatisation.