You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Minority stake in Montenegro's power utility attracts no buyers

Author Radomir Ralev
Minority stake in Montenegro's power utility attracts no buyers Source: EPCG

PODGORICA (Montenegro), August 15 (SeeNews) - Montenegro's majority state-owned power utility company EPCG [MNG: EPCG] said it attracted no bids in a second call for the sale of 10% of its capital.

The company may now offer the shares to one or more buyers through an auction or continuous sale on the free market of the Montenegro Stock Exchange, or it may cancel them, EPCG said in a statement on Friday.

You can subscribe to our M&A newsletter here

In case the shares are cancelled, EPCG will reduce its capital by 77 million euro ($79 million), incurring a 52.8 million euro loss, the company said.

The deadline for the sale or cancellation of the shares, which were owned by Italian utility A2A before being sold back to the company last year, is September 26.

Last month, EPCG invited bids for a 10% stake in its capital in a block trade on the country's stock exchange. The company initially set a minimum price of 8.63 euro per share, but then reduced it to 7.33 euro as the first call attracted no bids.

The Montenegrin government owns an 88.7% stake in the capital of EPCG, the company holds 10% of its own capital and the remainder is controlled by smaller shareholders.

($ = 0.9774 euro)