Montenegro's govt to wrap up KAP acquisition talks by end-2012 - PM Luksic.

By bne IntelliNews October 9, 2012
Montenegro will finalise negotiations with interested investors over taking over aluminium producer KAP by the end of 2012, PM Igor Luksic said, as quoted by news agency MINA-Business. The economy ministry holds intensive talks with all stakeholders, including the trade union, which may have a significant influence on the outcome given the fact that KAP employs over a thousand workers. The state does not project activation of new guarantees on KAP's debt as the plant has so far managed to pay interests and repayment of principal could therefore be delayed, Luksic added. Last week, economy minister Vladimir Kavaric said that the government was close to receiving two bids for KAP from Germany's HGL Group and Turkey's Toscelik. KAP is at risk of shutting down production as EPCG will cut the electricity supply of the plant over EUR 54mn in unpaid debt. The government, which owns 29.4% stake in the plant, decided to cancel the privatisation deal with KAP's owner, Russia's EN+ Group, and is currently looking for a new investor.

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