Co-owner of the “Simo Milošević” Institute, Žarko Rakčević, whose company Vile Oliva holds 27.4% of the shares, announced that he will closely monitor the potential consolidation of shares between the state and another group of minority shareholders to reach a two-thirds ownership.
A group of small shareholders of the Institute, organized through the Montenegrin Association of Small Shareholders (CAMA), began to sell shares of the company on the stock exchange at a price of 100 EUR per share, according to Vijesti.
The state holds 56.4% of the Institute’s shares, Vile Oliva holds 27.4%, and other small shareholders collectively hold 16%. The state needs an additional 10.2% of the shares to achieve a two-thirds majority, enabling it to make independent decisions on key matters such as the Restructuring Plan, recapitalization, and asset sales.
Rakčević had previously been blocked from purchasing part of the Institute’s shares through block trading.
He told Vijesti that it is not advisable to undermine laws in Brussels or prevent market-based and free pricing and trading of shares.
“It is the free will of the shareholders to buy or sell shares at a price they believe is fair. I will follow with interest the lawful actions and the potential consolidation of the majority and some minority shareholders who have strongly opposed the privatization of the Institute,” Rakčević said.
He added that, at the same time, he would ensure the two-thirds majority necessary to adopt the Institute’s Restructuring Plan, which, as the first step, would privatize by selling the Soliter building, the Children’s Department, E Department and the main building of the Institute’s first phase.
“After that, the Institute would finally regain ownership of its land, and according to the Restructuring Plan, the land would be sold, and apartments would be built behind Tito’s villa, with a mixed-use building or a shopping center to be developed on the Institute’s parking lot. All in the name of the public interest, saving the Institute, and promoting health tourism. We will not support such a restructuring plan or the ‘saving of the Institute’,” Rakčević concluded.
