A scandalous invitation to investors for privatization of HTP ‘Ulcinjska Rivijera’: Agency of Montenegro for Economic Restructuring and Foreign Investments and the Raiffeisen Investment, privatization advisor to the Government, called yesterday public tenders for selling 60.73 percent stake in HTP “Ulcinjska Rivijera”. But the information contained in this invitation to tender regarding the amount of public capital that needs to be privatized as well as share nominal value was false.
Podgorica – Agency of Montenegro for Economic Restructuring and Foreign Investments and the Raiffeisen Investment, privatization advisor to the Government, called yesterday public tender for all interested investors to submit their bid for purchase of 60.73 % state-owned stake in HTP “Ulcinjska Rivijera” from Ulcinj, but the text of the public invitation consists of incorrect information regarding the amount of public capital that needs to be privatized as well as share nominal value.
Bids can be submitted not later than 7th September and all interested buyers are allowed to visit the company and data room with all confidential information starting from yesterday.
In advertised invitation to tender it is said that the total share capital amounting to EUR 81.529 million was divided into 1.594.575 shares which is incorrect information. According to the latest estimate, there was a share capital decrease of EUR 20 million and it amounts to EUR 62 million approximately.
In addition to this, it is also stated incorrectly that the share nominal value was EUR 51.1292 per share, while the correct information is that the nominal value per share is EUR 39.5005.
After the most recent evaluation of the hotel and tourism company “Ulcinjska Rivijera”, the share capital was decreased by allocating a lower nominal value to a share (approximately €12) while the total number of shares remained unchanged.
The Central Depository Agency (CDA), which has the register of all securities in Montenegro, registered the latest change in the share capital of the Ulcinj-based company and released the information 10 days ago. Thus, on 1st June all market participants in domestic capital market were informed on this matter.
However, it seems that the Government wasn’t aware of these changes so yesterday’s public tender brought much confusion among securities dealers on stock exchanges but also among privatization funds which, according to the information from CDA, own somewhat less than 9 percent of stake in this tourism company.
– The Tender Commission for Tourism should be asked for information regarding this issue. They were probably using available information on nominal value, while the procedure of share capital decrease wasn’t brought to an end in CDA to all appearances. In any case, the information will be updated and investors will be informed on everything – the Director of the Agency for Economic Restructuring and Foreign Investments, Branko Vujovic, said for Daily “Vijesti” yesterday in a brief statement. Apart from Vujovic, the public invitation to tender is signed by Margaret Rajkovic, a representative of the Raiffeisen Investment.
The subject to the announced sale is 385.612 shares or 24.18 % stake in HTP “Ulcinjska Rivijera” owned by the Pension and Disability Insurance Fund of Montenegro, 299.652 shares or 18.79 % stake in the company owned by the Government of Montenegro and 128.538 shares or 8.06 % stake in the tourism company owned by the Employment Agency of Montenegro.
Bidders may establish Consortium with other parties, prior to or after the purchase of the tender documents, and submit the bid. In this case, the bid should specify solidary responsibility of the members of consortium with respect to requirements defined in the tender and conditions from sales agreement.
Prior to bid submission, the bidder is required to make a deposit in the amount of EUR 150.000 and submit a confirmation about the deposit payment or Bid Bond issued in the form of the unconditional bank guarantee, which is payable upon first demand and issued by the bank that has at least BBB credit rating according to the Standard and Poor’s Agency, or Baa3 credit rating by Moody’s.

The tender documents are available at the cost of EUR 10.000.

By M.M.

© Daily Press – Vijesti. All rights reserved.

Visit-Montenegro.com