Document: Commerce Department Recruits Montenegro Privatizers www.tenc.net [Emperor's Clothes] Compiled and provided by the U.S. Department of Commerce's Bosnia/Balkan Task Force, part of the Central and Eastern Europe Business Information Center (CEEBIC). A weekly update of commercial information and opportunities for U.S. firms interested in Bosnia & Herzegovina, Croatia, FYR Macedonia, Kosovo and the Balkans. Compiled and provided by the U.S. Department of Commerce's Bosnia/Balkan Task Force, part of the Central and Eastern Europe Business Information Center (CEEBIC). Montenegro: Seeks Privatization Fund Manager Date: 08/28/2000 6:00:33 PM Eastern Daylight Time From: [EMAIL PROTECTED] (CEEBIC) Introduction Montenegro will begin a privatization program which will return formerly nationalized companies to the private sector. USAID is providing technical support to Montenegro during the privatization process. Montenegro has developed legislation and regulations for the privatization process. Under Montenegrin legislation foreign and domestic investors receive equal treatment. Foreign investors may convert local currency into foreign currency. Foreign investors may repatriate profits and capital to their country of origin and will enjoy a five year tax holiday on corporate profits. Privatization The privatization program will have two phases. In the first, 419,000 Montenegrin adults will receive vouchers from the government. These vouchers, which repesent the national patrimony, will permit these citizens to bid for shares of companies being privatized during an auction which will constitute the second phase. A total of 222 small and medium sized companies will be auctioned off in the second phase as will 19 large ones. The nominal book value of the entire privatization program will be 2.3 billion DM. Instead of bidding for shares directly many Montenegrins may prefer to turn over their vouchers to privatization funds which will bid for shares, creating a diversified portfolio of stocks. The voucher holders will receive units of the fund in exchange for these vouchers. The government of the Republic of Monetenegro is seeking experienced portfolio managers to manage these funds. Applicants should be prepared to demonstrate a record of prior fund managements and present a 3 year business plan. Successful applicants are required to invest a minimum of 250,000 DM in the management company. The Montenegrin government expects that managing the privatization funds should be quite profitable. The management fee is up to 5 of assets under management. The fund will play an active role in restructuring companies in their portfolios. Many of the companies will need to be upgraded in terms of management and financing. By restructuring these companies privatization funds should be able to add value to the portfolio over the long term thus greatly enhancing its market value. To find out additional information about this project, please contact Mr. Fletcher Hodges via e-mail at: [EMAIL PROTECTED] *** If you find emperors-clothes useful, we can use your help... (The Soros Foundation does NOT fund Emperors Clothes.) We rely on volunteer labor and donations. Our expenses include: Internet fees, Lexis, our Internet research tool, and phone bills. We use the phone a lot for interviews and to discuss editorial changes. Every month hundreds of thousands of people read articles from Emperor's Clothes. By making a contribution you will be helping to spread the word. To make a donation, please mail a check to Emperor's Clothes, P.O. Box 610-321, Newton, MA 02461-0321. (USA) Thanks for reading and for helping! www.tenc.net [Emperor's Clothes] _______________________________________________ Crashlist resources: http://website.lineone.net/~resource_base To change your options or unsubscribe go to: http://lists.wwpublish.com/mailman/listinfo/crashlist
