Montenegro's EPCG to cut capital by cancellation of treasury shares

The proposal will be put to the vote at an extraordinary shareholders' meeting scheduled for December 23, the company said in a statement last week.

EPCG intends to cancel 8.4 million own shares with a nominal value of 6.5175 euro apiece that were repurchased in September 2019, EPCG said.

In August, EPCG said it may offer 10% of its capital 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.

Two calls for the sale of the shares in July and August attracted no bids. 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.

($ = 0.97684 euro)