The state would like to increase the ownership share in the Montenegro Stock Exchange to over 10%

With the earlier purchase of shares from the bankrupt Atlas Bank, the state acquired 5.79 percent ownership of the Montenegro Stock Exchange, and now it is able to purchase shares from minority shareholders, which would increase the share in the ownership structure to over 10 percent.
These are the shares of minority shareholders Prva banka Crne Gore AD Podgorica (3.73 percent) and natural person Lenka Zea (1.44 percent), which in total amounts to 5.17 percent of the ownership structure.
As stated in the Government announcement, the state also has an economic interest in the purchase of the mentioned shares, because the current capitalization of the Montenegro Stock Exchange is EUR 2,011,011 (1 share = EUR 600), while the total assets (assets of the Montenegro Stock Exchange) according to the balance sheet as of September 30, 2022. 2,532,003 EUR, of which only the cash item accounts for about 1.5 million EUR.
– If the state were to take over the mentioned package of shares (176 shares x 600 EUR), it would pay a total of 105,600 EUR, which with the already acquired 5.79% ownership would enable it to have a total share in the ownership structure of over 10%, with the right to convene the Assembly already secured shareholders and proposing a member of the Board of Directors. In this way, the state would have an active position in deciding on all important issues of the further development of the capital market – it is stated in the Government’s decision made at today’s telephone session.
As recalled, the Government of Montenegro adopted two pieces of information regarding the state’s participation in the capital market in the previous period. After the information about the intention of the Government of Montenegro to buy the shares of Montenegroberza AD Podgorica owned by Atlas banka AD Podgorica in bankruptcy, consent was given to buy the shares of the mentioned shareholder, as part of the ownership structure in the stock exchange
In this way, the state acquired 5.79 percent of ownership and got the opportunity to actively participate in the Shareholders’ Assemblies of the Montenegro Stock Exchange through its representative, according to the announcement. The procedure for electing the members of the board of directors is ongoing, so a meeting of shareholders of this joint-stock company is expected in July, as well as the formalization of the presence of the state in the ownership structure.
Let us remind you that when the stock exchange was founded, the state was among the first shareholders.
A share of more than 50 percent in the ownership structure of Montenegro Stock Exchange AD is held by investment companies whose shareholders cannot exercise their rights based on ownership of shares in Montenegro Stock Exchange, and based on court decisions on the blocking of assets, the Government’s announcement reminds.
– Shareholders ID-OIF Atlas Mont with 33.55 percent, ID CG Broker-dealer AD with 17.26 percent and DOO Atlas Grupa with 6.17 percent participate in the ownership structure of the stock exchange, which makes a total ownership share of 57.55 percent of those persons who are currently unable to exercise their rights due to the ownership of shares in the Montenegro Stock Exchange (e.g. disposal of shares and voting at the Shareholders’ Meeting are disabled), based on the Court’s decision on the blocking of assets, and until the end of court proceedings related to the Atlas Group and persons
connected with the same – it is emphasized in the announcement of the Government and adds that full control over Montenegro Stock Exchange AD Podgorica is currently exercised by minority shareholders.
The justification for buying shares is explained by the proactive role of the state in the sphere of public finances, which implies a presence on the capital market as well. As explained, in the future, investment funds can be seen as one of the most significant factors in stimulating trading on the stock market. It is reminded that Montenegro is expecting a reform of the pension system and the creation of private pension funds, which can play an active role in the stock market. In addition to investment funds, pension funds are the main generators of stock market turnover in the world.
– Due to the above, a logical conclusion is that the state should enter the ownership structure of the Montenegro Stock Exchange in as large a percentage as possible, which would lead to the return of confidence and security in the capital market, and on the other hand, enable the state to borrow more cheaply and easily on the domestic capital market – announced the Government.

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