Montenegrin Privatization Council cancelled tenders for selling stakes in Luka Bar and AD Montecargo
The Montenegrin Privatization Council voiced its intention to cancel the sale of stakes in Luka AD Bar, the operator of the largest Montenegrin port in Bar and AD Montecargo, a railway cargo firm. OT Logistics Group, which successfully completed negotiations on purchasing stakes in both firms, is surprised with the decision of Montenegrin authorities.
The Privatization Council informed about its decision during a press conference on Monday. The Council’s intention to cancel the tenders is completely incomprehensible for OT Logistics in view of the development of the tender procedure to date as well as the successfully completed negotiations. Any additional information will be provided upon the firm’s inquiry into the matter and after receiving a justification of the decision from the Montenegrin authorities.
„The decision of the new government of Montenegro is a surprise to us, especially in the context of full transparency of the privatization process. Negotiations have been successfully completed in March and we had not received any signals as to a possibility of canceling the tender,” OT Logistics CEO Zbigniew Nowik commented. “We are currently investigating the matter and will inform the market about any new developments upon receiving more comprehensive information from our partners in Montenegro.”
OT Logistics completed negotiations with the government of Montenegro on purchasing stakes in the port of Bar and in AD Montecargo at end-March. According to the terms of the agreement, OT Logistics was to purchase a 30% stake in Luka AD Bar for EUR 8.52 mln as well as 51% in AD Montecargo for EUR 2.5 mln. The company additionally shouldered the obligation to conduct investment and modernization programs worth a total of ca. EUR 17.45 mln in both firms.