Authorities invite bids for 30% stake in flag carrier Montenegro Airlines.

By bne IntelliNews September 28, 2010
The government called a tender for a 30% minority stake in national flag carrier Montenegro Airlines, the national Privatisation Council announced. The tender winner will have the right to acquire majority control in the company within 2 years after the potential deal finalisation, the council said in the announcement. Authorities did not set a floor price for the offered stake. Interested parties should file their bids by Dec 15. We note that the original plans for denationalisation of the state-owned company foresaw that the state was to sell first a 5% stake in Montenegro Airlines, with the obligation for the buyer to perform a capital hike, thus raising its stake to 30%. Montenegro Airlines was transformed into a shareholding company in November 2008 in implementation of the first stage of the company's restructuring. EBRD, Israeli air carrier El Al and Greek diversified Restis Group have earlier expressed interest in the potential deal. Montenegro Airlines increased its net loss over fivefold y/y to EUR 4mn in 2009. The government controls 99.9% of the company's capital.

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