Ubović bought "Bemax" for 750 thousand euros

One of the largest private companies in Montenegro, "Bemax", changed its owner in July of this year, when Ivan Ubović for 750 thousand euros bought a hundred percent share of Veselin Kovačevića, which until then was listed as the official owner in the central register.

This was stated in the contract on the transfer of shares that "Vijesti" received from the Revenue and Customs Administration based on a request for free access to information.

According to the official financial reports of the company "Bemax" at the end of last year, it had fixed assets worth 120 million euros, the total capital of the company was estimated at 142 million euros, and the company had net undistributed profit from previous years in the amount of 141 million euros. "Bemax" achieved a net profit of 14 million euros last year, and 2020 million euros in 27,5.

This means that Kovačević voluntarily sold his company for only 0,5 percent of its value, i.e. the total capital. The value for which the company was sold is only five percent of last year's net profit.

Kovačević and Ubović signed the ownership transfer agreement on July 1 in front of a notary, and then it was submitted to the central registry of business entities, which became part of the public documentation, along with the data change documentation. The contract states that Kovačević founded the company with an initial investment of only 12 euros in January 2007, as well as that he subsequently paid an additional investment of 300 euros and transferred non-monetary funds of 437,8 euros to it.

So his invested money and funds in the company were worth 749,8 thousand euros, that is, after 15 years of managing the company and the dizzying growth of its value, Kovačević earned only 200 euros from the sale price.

According to the law on personal income tax, capital gains tax is calculated on the difference between the money invested in shares and company shares and the amount for which they are sold. That is, in this case, Kovačević should pay a tax of nine percent on this difference of 200 euros between the value of his capital investment and the amount for which he sold the company.

If he had sold the company at a value of 142 million euros, at which its capital was estimated just six months earlier in the balance sheet he submitted to the Revenue and Customs Administration, the tax would have amounted to 12,8 million euros. Then Ubović would also have to prove the origin of his money in that full amount, and not just for 750 thousand euros.

Ivan Ubović is the son of a businessman Ranko Ubović, who was considered the real owner of the company from the beginning and who, through his business and friendly ties with the previous government, secured numerous jobs for the company. The most significant thing is that "Bemax" was the largest subcontractor during the construction of the highway section from Podgorica to Mateševo.

The suspicion that Kovačević was not even selling the company with this contract, but only his name in the register, is reinforced by the fact that he himself said in November last year on the show "Načisto" on TV Vijesti that he was not the sole owner.

Kovačević then said that next to him is the informal owner of "Bemax" Ranko Ubović, although his name was never mentioned in the company's documentation. At the time, he did not want to comment on the speculation that Milan Roćen, a longtime adviser to President Milo Đukanović, was also behind the company.

"Ranko Ubović's role is related to the organization of the execution of works and help with the organization of mechanization, which he is skilled at and knows well. He works without a salary, he did not take a euro from the company, which can be seen through an insight into the cash flows," Kovačević said.

By concluding such a contract, the Ubović family became the owner of a legal and pure capital of 750 million euros for only 142 thousand euros, of which they can immediately withdraw 141 million from undistributed profits.

According to the contract, Kovačević will receive his share of 750 euros in installments over the next three years.

It is strange that Kovačević could not find a better price for this large and strong company, or that he received an offer from Ubović that could not be refused.