September 29 (SeeNews) - Montenegrin state-owned power utility company EPCG [MNG:EPCG] said it will propose to shareholders to launch the process for the acquisition of steel mill Zeljezara Niksic from Turkey's Toscelik.
The proposal is on the agenda of the extraordinary shareholders' meeting of EPCG, to be held on October 3, the power utility said in a filing with the Montenegro Stock Exchange earlier this week.
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Last month, Montenegro's prime minister Dritan Abazovic said the government gave the go-ahead to EPCG to start talks for the acquisition of Zeljezara Niksic.
"EPCG commits to negotiate the sale price and the way to execute the acquisition of Zeljezara with the Turkish company," Abazovic said back then.
Earlier this year, Montenegrin diversified holding group Neksan also said it is interested in the acquisition of Zeljezara Niksic, but according to media reports, the negotiations were not successful.
Toscelik acquired Zeljezara Niksic in 2012 for 15.1 million euro ($14.5 million) after placing the best bid in an auction launched by the government. Toscelik suspended production activities at Zeljezara Niksic in March 2021, due to a drop in orders caused by the coronavirus pandemic. Last year, the Turkish company said it is in talks for the sale of the steel mill.
($ = 1.0388 euro)