PODGORICA (Montenegro), February 18 (SeeNews) – The government of Montenegro and representatives of the municipal government of Podgorica have signed contracts for the recapitalisation and management of local tobacco company Novi Duvanski Kombinat with United Arab Emirate-based cigarette maker BMJ Industries FZ-LLC, the country's privatisation agency said.
In mid-November, the privatisation council said BMJ Industries FZ-LLC had placed the sole bid in a tender for the Montenegrin tobacco company, offering to recapitalise it with 20 million euro ($22.3 million).
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In line with the signed contracts, BMJ Industries FZ-LLC will invest the bigger part of the funds in the construction of a new plant within 12 months from the date the agreements come into force, the privatisation council said in a statement earlier this week.
The investor is also expected to immediately organise and launch production in the existing facilities and employ at least 80 workers to carry out regular duties until the completion of the new plant. BMJ Industries FZ-LLC will employ a further 55 workers once the plant is completed and an additional 20 workers per year.
BMJ runs a factory with a production capacity of 200,000 cases of cigarettes per month and has 20 brands.
The Montenegrin government owns 69.92% of Novi Duvanski Kombinat and the city of Podgorica owns the remainder.
Novi Duvanski Kombinat was set up by the government in November 2011. Its equity capital totals 6.8 million euro.
($=0.8979 euro)