Privatisation and Capital Investment Council Selling Hotel Sidro and Hotel Piva

By , 16 Jun 2019, 23:20 PM Business
Privatisation and Capital Investment Council Selling Hotel Sidro and Hotel Piva Copyrights: Hotel Sidro Bar, Booking

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15 June 2019 - The Privatisation and Capital Investment Council adopted the Request of the Port of Bar AD - Bar for the sale of 100% of shares in Sidro Hotel and accepted the Request of the Hotel Group Budvanska rivijera AD - Budva for giving consent to the Decision on modification of the Decision on sale by public auction regarding the sale of Piva Hotel in Plužine. The Auction Commission should conduct a procedure for the sale of part of the property of the Hotel Group Budvanska rivijera AD - Budva - Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction in accordance with this conclusion. 

As of 31 March 2019, the fixed assets of Sidro Hotel amounted to 1.172.118 EUR, while receivables amounted to 56.377 EUR, capital 575,929 EUR, accumulated loss 5.944.443 EUR, long-term liabilities and provisions 37.051 EUR, deferred tax liabilities 103.904, and short-term liabilities amounted to 543.859 EUR, as noted in the report of the Government of Montenegro.

The discussion pointed out this facility did not operate positively since the opening in 2010 and that the management of the Port of Bar intends to use the money from the sale of Sidro Hotel for the rehabilitation of Volujica quay construction in the length of 554 m and the construction of a 6,000 m² prefabricated storage facility. The session emphasised that 34 employees at Sidro Hotel were protected by a high-quality collective agreement in the five-year period after the privatisation, and the Council recommended to the Port of Bar to make the final decision on the sale of Sidro Hotel, adding that an integral part of the decision is a social programme that should be implemented by a potential buyer. 

The initial price of Sidro Hotel is set at 1.704.480,02 EUR.

By accepting the Request of the Hotel Group Budvanska rivijera AD – Budva, the Council agreed that the new Decision on sale by public bidding would indicate the price of 152.000 EUR, since the book value of the Hotel amounts to 150.966,98 EUR. The Council instructed the Auction Commission to conduct the sale procedure for the part of Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction. 

The Privatisation and Capital Investment Council reviewed the Information on the fulfillment of conditions for the issuance of the fourth bank guarantee to Global Ports Holding and proposed to the Government to adopt the Information, which states that this company invested the amount of 2.027.879,05 EUR in the rehabilitation and reinforcement of the construction of the southern coast of Gata 1, which created the conditions for the issuance of the appropriate bank guarantee.

The Council passed the Proposal of Decision on amendments to the Decision on the privatisation plan for 2019, which envisages the sale of the remaining part of 1,45 percent of state-owned shares in the New Tobacco Plant AD Podgorica, after the current majority owner expressed his interest in the purchase of the remaining state-owned shares.

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