By activating Put option, A2A officially starts process of exiting from EPCG ownership and management structures

Podgorica, Montenegro (3 July 2017) -- Government of Montenegro has received an official notification from the Italian A2A partner on the activation of the Put option defined by the Shareholders' Agreement between the Government and the A2A, as majority shareholders in the Electric Power Industry of Montenegro (EPCG). By activating this option, the A2A officially started the process of exiting from the EPCG ownership and management structures.

Government of Montenegro has achieved this option in negotiations in order not to burden the budget of Montenegro, as it is a about a payment in seven annual instalments. Therefore, it is a matter of consensual resolution of the relations between the two shareholders under the conditions that have been agreed in the negotiations. After activation of the Put option, the A2A, under the Shareholders Agreement, no longer has the right to the Reserve Responsible Questions.

Partnership with the A2A has contributed to the fact that the EPCG is now in a better position than it was at the moment of joining the partnership with A2A, although not to the extent we projected. A total of EUR 110 million has been invested, the profit for 2013 amounted to EUR 35 million, while the profit for 2009 totalled EUR 4 million. Electricity losses in the distribution network this year are expected to be around 14%, and they were over 22% in 2009. The level of collection in 2016 was about 101% and 91.5% in the year of recapitalisation and partial privatisation. At the moment, the company has over EUR 230 million in its accounts, representing a good base for investment and the salaries of employees in the period 2009 - 2015 were 10% higher on average.

MINISTRY OF ECONOMY