Montenegro Stock Exchange has resumed trading of shares in the “Dr Simo Milošević” Institute following the conclusion of a public offer by the government and HTP Olive, co-owned by Žarko Rakčević, to buy shares from minority shareholders.
The offer attracted limited interest, with only 3,394 shares purchased from minority shareholders, representing 6.2% of the 54,846 shares available. The total value of shares bought was €176,400.
Under the joint action agreement, the government and HTP Olive planned to acquire 54,846 shares from small shareholders at €58 per share, reflecting a minority stake purchase. Government and HTP Olive, together with related entities, now hold 85.66% of the Institute’s capital.
The restructuring plan approved in February aims to achieve both short-term financial stabilization and long-term financial recovery, as well as improve competitiveness. Key measures include:
- Ownership restructuring through share buyback and recapitalization;
- Debt restructuring and funding for planned investment in Phase Two of the Institute;
- Strategic restructuring to continue services of public economic interest;
- Investment in modernizing accommodation, therapeutic facilities, and infrastructure to meet four-star rehabilitation standards;
- Business restructuring, including marketing, IT systems, and human resources.
Following the share purchase, a recapitalization of around €21 million is planned, with HTP Olive contributing €7 million and the government covering the remainder. Minority shareholders may also participate, purchasing new shares at the nominal value of €155 per share, higher than the current market price. The recapitalization is intended to financially stabilize the Institute and ensure its long-term sustainability.
