The Board of Directors of the Montenegro Stock Exchange made decisions today on the temporary lifting of the price limit for trading shares in Railway Transport (ŽPCG) and Railway Rolling Stock Maintenance (OŽVS).
The decision will be valid from tomorrow (Friday) until May 23, and should enable the Government to buy shares of ŽPCG at a price of 1,7 euros and OŽVS at 2,1 euros.
ŽPCG shares now cost 38 cents on the stock exchange, and OŽVS 1,45 euros.
The current price rule limits daily price growth to ten percent. The cancellation of this restriction is possible if it is determined that the prices of the shares are significantly lower than the nominal value, as well as if the shares are illiquid, that is, there was not enough interest in their purchase.
The cancellation of the price limit was requested by the authorized VIP broker Montenegro.
"After reviewing the report from the trading system of the Stock Exchange on the status of orders, the Board of Directors of the Stock Exchange assessed that these are illiquid financial instruments, that there is a large market imbalance, and that the temporary abolition of the price limit for a period of three working days would enable the establishment of a price balance and entering into transactions with the issuer's shares", it was stated in the explanation of the decision.
It was also stated that the Government stated in the information that it has an economic interest in buying these shares, in order to subsequently merge OŽVS with ŽPCG.
In the explanation, it is emphasized that the book value of shares according to preliminary balances as of 31.12.2023/2,17/2,81. year of both companies, ZPCG XNUMX euros per share, and for OZVS XNUMX euros per share.
"It is important to note that the nominal price for ŽPCG shares is EUR 5,2813 per share, and the nominal price for OZVS shares is EUR 4,6676. If the State were to take over the mentioned package of shares from minority shareholders, which would cost a total of less than EUR 1,5, 98 million, which, with the existing shares, would enable ZPCG to increase its share capital to more than 96%, and OZVS to more than 95% shareholders' assembly in the case when the majority owner has more than XNUMX% of the share capital," the explanation states.
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