June 7 (SeeNews) - Serbian diversified conglomerate MK Group has increased its stake in the capital of Montenegrin hotel operator Budvanska Rivijera [MNG:BUDR] to 32.2% and in Sveti Stefan Hoteli [MNG:SSHO] to 31.25%, it said.
MK Group invested a total of 24.3 million euro ($26.1 million) to acquire 3.24% stake in Budvanska Rivijera and 1.51% shareholding interest in Sveti Stefan Hoteli through its subsidiary MKG Properties, the Serbian company said in a filing with the Montenegro Stock Exchange last week.
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MKG Properties has exceeded the 30% stake threshold in both Budvanska Rivijera and Sveti Stefan Hoteli and is now obliged to launch takeover bids for the two companies, MK Group said.
MK Group has so far invested 500 million euro in the tourist sector in the Adriatic region, and currently holds stakes in 15 hotels in Serbia, Slovenia, Croatia and Montenegro.
Before the transaction, Montenegro's government was the largest shareholder in Budvanska Rivijera and Sveti Stefan Hoteli, with a 41.6% stake in both companies.
MK Group aims to become a majority shareholder in Budvanska Rivijera, MK Mountain Resort director general, Nikola Avram, said in 2018. "We want to raise the level of service in the hotels of Budvanska Rivijera to four-plus and five stars and, with some of the world's leading brands, we will make a 'hot spot' of Montenegrin tourism in Budva," Avram said back then.
($ = 0.9315 euro)