Government decides to increase State's share in EPCG

Podgorica, Montenegro (17 April 2018) -- On the basis of the obtained opinion of the majority of the members of the Government, without holding a session, the Government of Montenegro adopted today the Proposal of the Contract on execution of the Path Option and forwarded it to the Parliament for consideration.

The proposal envisages that the State will pay EUR 68.9 million for 17,252,885 shares instead of the first tranche of EUR 35.7 million for 7,826,438 shares, and will increase in May 2018 the ownership stake in Montenegro's power utility Elektroprivreda Crne Gore (EPCG) from 57.01% to 70.16% instead of initially predicted 63%. In addition to acquiring two-thirds ownership and adequate shareholder rights, the State in this way practically returns in the first step its ownership stake in the EPCG to the level it had before the partial privatisation and recapitalisation in 2009.

According to the Contract, the remaining shares will be taken over by the EPCG through the mechanism for acquiring own shares, in accordance with the Law on Companies and by the State in alternate tranches.

The Contract also provides for the possibility of returning to the basic payment scenario in case any of the planned tranches of acquiring own shares can not be realised.

Compared to the basic version of the Contract from August 2016, the new Contract achieves a threefold faster realisation of the breakdown clause of the strategic partnership, creates preconditions for defining clear development and investment plans in the national power utility, but also provides significant financial savings in the amount of around EUR 20 million, or 8% of the initially contracted path option. The new Contract confirms the responsible attitude of the State under contractual obligations.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO