February 20 (SeeNews) - The head of Montenegro's privatisation agency, Branko Vujovic, has said the 56.48% state-owned stake in healthcare and spa centre Simo Milosevic is on the list of assets planned for sale in 2017.
The privatisation could be carried out through the sale of shares or via capital restructuring, as the aim is to ensure enough funding for investments in the company's core business, Vujovic told Montenegrin public broadcaster Radio Televizija Crne Gore (RTCG) on Saturday.
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Investors from the UAE, China, Norway and Israel have already shown interest in the planned sale, RTCG quoted sources from the company's management as saying.
The privatisation agency is interested in investors that could realise the potential of Simo Milosevic, which has 700 employees and has recently started a project to attract tourists from UAE, Poland and Denmark, Vujovic pointed out.
The Montenegrin government has already carried out four tenders for the privatisation of the state-owned stake in Simo Milosevic. London-based International Wellness Group Limited (IWG) was the only bidder in the latest tender and took over the firm for 10 million euro ($10.6 million) in August 2015.
In May 2016, Montenegro's government terminated the deal, as IWG did not fulfil its obligations within six months of the contract's conclusion. Under the deal's terms, IWG had to invest at least 50 million euro within five years from the takeover. The agreement also included a commitment to invest 10 million euro in medical equipment.
Healthcare and spa centre Simo Milosevic, also known as Institute Igalo, is based in the Adriatic resort of Igalo, in the municipality of Herceg Novi.
($ = 0.941292 euro)