24.03.2009. Sale contract signed

Podgorica, (MINA-BUSINESS) – The representatives of the Government of Montenegro, state funds and the Swiss company Home Art and Sales Services signed today a €20 million contract for acquisition of a controlling interest of 56.4 percent of the Igalo-based Institute „Simo Milosevic“.

Home Art, owned by Serbian businessman Filip Zepter, was represented by lawyer Zoran Stanojevic.

The Agreement foresees that the amount of €20 million would be paid in the next 15 working days.

The Swiss company has undertaken the obligation to invest €150 million in the next four years. The investments are planned in three 12-month cycles, with construction breaks during the tourist seasons.

The Employment Bureau and the development and healthcare funds hold over 37 percent of stake in the Institute, whereas the Government has about 19.2 percent. The Republic of Serbia has the largest single interest - 25.94 percent, while ICN Pharmaceuticals holds 1.29% of the share capital.

Director of the Agency for Economic Restructuring and Foreign Investments, Branko Vujovic, stated that the investment programme would lead to the extension of capacities and result in attaining a four star quality level.

Vujovic repeated that it was very important that Institute kept the same basic activity, and that there would be no layoffs in the first three year period.