Government of Montenegro planning to sell Budvanska Rivijera – Sveti Stefan and Milocer to remain state-owned

The Government of Montenegro will sell the Institute Simo Milosevic in Igalo this year, as well as Hotel Group Budvanska Rivijera, after Sveti Stefan and Milocer are extracted from it into a new state company, the Privatization Council decided on March 1, 2018.

The sale of Budvanska Rivijera, as stated, will follow the restructuring, that is, the division into two companies.

According to the Government's plan, one company, 100% owned by the state, will consist of Sveti Stefan and Milocer, the complex leased to businessman Petros Statis. The state capital in the remaining part of Budvanska Rivijera, consisting of hotels Slovenska Plaza, Mogren, Aleksandar, Palas and Kristal, will be reduced by the value of the said property. The shares of small shareholders will consequently increase, and Miodrag Kostic and Neil Emilfarb currently hold around 30% of the shares. This way, they will either acquire a majority stock or get very close to it.

The Government plans to sell all the remaining shares in the new Budvanksa Rivijera.

The privatization of the Igalo Institute will entail the sale of 56.48% of the state stock, whereby the purchaser obliges to realize the investment program.

The plan also envisages the valorization of Ada Bojana through a public-private partnership, through “development, construction, financing and management of the exclusive tourist complex and a long-term lease of the Ada isle”.

The tourist complex Ada remains the only asset of Ulcinjska Rivijera, following the state's lease of hotels Bellevue and Olimpic for a period of 30 years in 2017.

Using the same principle, the government is looking for partners for the former military complex Mediteran in Zabljak, future ski resorts Kolasin 1600, Cmiljaca and Zarski and the existing ski resort Savin Kuk, Uvala Maslina in Bor and the location between Njivice and the mouth of the river Sutorina, as well as the locations Donja Arza, Kabala and Mrkovi-Bijela Stijena, all in Herceg Novi. The Ecolodge complex in Lovcen is offered as well.

The Government announces that the plan includes only companies and locations not subject to court disputes and restitution.