Italy’s A2A to exit Montenegrin state utility EPCG by year-end

The Italian power firm A2A will have no holdings in the state utility EPCG by the end of this year, the state TV reported. The Italians currently own only 3.2% of the utility and its remaining shares in EPCG will be purchased by the government or by the state utility itself by year-end. The government plans to buy back 3.20mn shares from A2A for EUR14.33m by end-November and 636,793 shares for EUR2.85m by end-December at the latest to complete A2A’s departure. The government currently owns 85.4% of EPCG, the utility owns 10% of its own shares and the remaining shareholders own 1.2% of the utility’s shares.

The government had agreed to purchase A2A’s shares in EPCG in seven annual instalments for EUR250m, starting from May 2018, but later decided to buy back the shares faster than initially planned to relieve some burden on the budget and create preconditions for developing the electricity sector. The total amount of the shares was discounted to EUR 230.6mn from initial EUR250m due the cabinet decision to expedite the buyback of the shares. A2A purchased almost 44% of the state utility in 2009 for EUR430m.

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