The restructuring plan for the “Dr Simo Milošević” Institute will be presented to shareholders for the third time on February 24. This follows a request from the government to expand the agenda of the shareholders’ assembly, after the Project Team from the University of Montenegro, led by Professor Dr. Mijat Jocović, adjusted the plan according to the agreement between the government and the Institute’s largest minority shareholder, HTP Oliva.
The revised plan reduced the value of the construction works for the second phase of the Institute, aimed at achieving a four-star level, from €69.7 million to €61.6 million. This change was one of the main concerns raised by HTP Oliva’s co-owner, Žarko Rakčević, who believed that the project could be completed with significantly less money.
The fact that there is no buyback of shares from the minority shareholder with a significant stake reduced the necessary funding by an additional €6.08 million. Also, the funds required for current liquidity were lowered by €4.59 million, assuming the restructuring of an existing loan from the Development Bank for €2.46 million and the fact that there is no basis for the repurchase of shares from dissenting shareholders, amounting to €1.75 million, due to de-investment below 20% of the company’s total value.
This has led to changes in the financing structure, as the sale of the first phase was abandoned, and minority shareholders expressed their intention to participate in the financing of the plan in proportion to their ownership stake.
According to the revised plan, the total required amount is reduced from the initially planned €106.8 million to €88.06 million, including multi-year investments in facilities amounting to €61.6 million, €1 million for the information system, €345,000 for marketing activities, and €21.4 million for current liquidity, with €3.5 million allocated for ownership restructuring this year.
The amount of state aid was reduced from €64 million to €52.8 million, while the Institute, together with minority shareholders, will secure 40% of the funds, amounting to €35.2 million.
In addition to the sale of the Children’s Department for around €5 million, which was agreed upon between Rakčević and the government, the plan still includes the possibility of selling the skyscraper and E department for €8.5 million. As a result, the expected income from the sale of the Institute’s property has decreased from €28.2 million to €13.4 million. The remaining €14.46 million will be secured through loans.
The plan also mentions that the Project Team received a request from the government to supplement the plan to include HTP Oliva in the realization, exclude the sale of the first phase, and foresee the sale of the Children’s Department, with the potential sale of the skyscraper and E department next year. The request also involved reducing the initially planned investments. The agenda for the shareholders’ assembly on February 24 initially included only the dismissal of the old and appointment of the new board of directors, but it has been expanded after the plan was finalized. The current board is chaired by Dr. Predrag Dragojlović, with members Pavle Obradović, Petar Rakčević, Goran Čabarkapa, and Savo Kalezić.
The plan has been discussed twice so far, but after the second session, an agreement was reached between Oliva and the government. This company also insisted on the need to convert land use rights into ownership, which can only be designated for healthcare or commercial tourism purposes.
Following the second shareholders’ meeting, Rakčević purchased shares on the stock exchange from a group of shareholders, increasing his stake to nearly 29%. The state, through the Development Bank, the government, and state funds, holds 56.4%, while individuals hold 11.3% of the shares.
