PODGORICA (Montenegro), October 2 (SeeNews) – Montenegro has called a tender for the sale of 100% of tobacco company Novi Duvanski Kombinat or for its recapitalisation without purchasing company shares, the country’s privatisation council said.
An offer to buy the company’s 7,669,611 shares or to recapitalise it should include an investment proposal for the construction of a new factory in Podgorica where production must be launched 12-15 months after the deal is concluded, the privatisation council said in a statement on its website on Thursday.
You can subscribe to our M&A newsletter here
Bids should be sent by November 16.
Montenegro's government owns 69.92% of Novi Duvanski Kombinat and the city of Podgorica owns the remainder.
Several tenders for the sale of Novi Duvanski Kombinat have failed so far. The last tender was declared unsuccessful in mid-2015 as the sole bidder, Duvan Comerc, failed to sign the contract within the set deadline.
Novi Duvanski Kombinat was set up by the government in November 2011. Its equity capital totals 7.7 million euro ($8.6 million).
($=0.8955 euro)