Podgorica, Montenegro (17 November 2015) — Sole bid, submitted by the BMJ Industries FZ LLC from the United Arab Emirates in the public tender for the purchase of the New Tobacco Plant AD Podgorica, was opened at today’s session of the Tender Commission for Privatisation, Montenegro’s Council for Privatisation and Capital Projects states in its press release.
According to the tender procedure, the bidders were requested to submit documentation meeting the following requirements:
(i) ownership over a registered company, and tobacco industry-related experience for at least 5 years prior to the launching of the public tender;
(ii) annual revenue of no less than EUR 10 million over the last business year prior to the launching of the public tender, and signed letter of intent or management agreement with a company fulfilling the qualification requirements specified by Section 4 (i) of the public tender.
BMJ Industries FZ LLC company of United Arab Emirates has submitted an offer for the recapitalisation without buying stocks, intending to invest EUR 20 million in fixed and current assets of the factory. According to the offer, the fixed assets’ investment totals EUR 18 million, whereas the investment in the current assets amounts to EUR 2 million. The bidder also plans to buy new land along with the facility for launching the production.
According to the submitted documentation, the UAE-based company owns a tobacco factory with the capacity of 200.000 cards per month, as well as 20 brands and 40 different kinds of products (types of cigarettes). The company aims to engage 55 people over the first year, meaning that a total of 135 people will be hired by the end of the fifth year.
The Tender Commission will assess legal validity of the bidder’s qualification and fulfilment of the required conditions set forth in the public tender’s instructions.
It will also inform the public in a timely manner about the elements important for the privatisation of the New Tobacco Plant AD Podgorica, Montenegro’s Council for Privatisation and Capital Projects concludes.
Source: Government of Montenegro