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PODGORICA (Montenegro), November 14 (SeeNews) – Italian power utility A2A said its net profit fell 30% on the year in the first nine months of 2017, to 226 million euro ($265 million), due to the put option exercised on the company's 41.75% stake in Elektroprivreda Crne Gore (EPCG).
"Since July 1, 2017, as a result of exercising the put option, the stake in EPCG was in fact reclassified from a permanent investment to a held-for-sale investment with the consequent change in the valuation criteria," A2A explained in a statement on Monday.
As a result, the asset value was cut by 93 million euro, the Italian company said.
Montenegro's government said in July it received an official application from A2A for the sale of the company's shareholding interest in EPCG. The government also said it will pay a total of 250 million euro for the shares held by A2A in seven annual instalments so as not to burden the state budget.
($ = 0.852971 euro)