Montenegrin Utility EPCG Shareholders OK Cap Hike, New Board Line-up – Media

The government in Podgorica sold a 18.3% stake in EPCG to A2A earlier this month under a tender procedure launched back n February. The stake was divided 50/50 into 11,457,357 existing shares owned by the state and an equal number of new EPCG shares that were to be issued by the state. No call price was set in the tender but the successful bidder was required to buy out the stakes of the minority shareholders at a price equal to the one it would pay for the state-owned shares. A2A bid 8.4 euro per share.

The decision to issue 11.45 million shares will generate an influx of 96.3 million euro ($141 million) which will be spent on the upgrade of existing and the construction of new power generation facilities, news daily Vijesti (www.vijesti.cg.yu) reported on Wednesday, quoting EPCG executive director Ranko Vojinovic.

A2A, which has already made the necessary payment, acquired a combined 18.3% of EPCG's capital during the privatisation process and the capital increase, and together with the 17% purchased from privatisation funds and about 10% bought from small shareholders, the Italian company will now control a stake of approximately 45% in the utility, Vijesti said.

The shareholders also approved granting to A2A two more seats on the EPCG board of directors to which it is now entitled in addition to the one seat it already has, Vijesti added.

($=0.6835 euro)