The Simo Milošević Institute in Igalo is set to receive €21–23 million from a recapitalization expected in January or early February next year. The funds will be used to fully settle the Institute’s outstanding debts, according to board member Petar Rakčević.
The shareholders’ assembly recently approved the issuance of 152,066 new shares at a nominal price of €154.93 each. The recapitalization is part of the Institute’s restructuring plan adopted in February, aimed at clearing debts and laying the foundation for a new investment cycle.
Currently, the state and its funds own 57% of the Institute, Vila Oliva holds 30%, and minority shareholders around 13%. The recapitalization will occur in two rounds, giving existing shareholders pre-emptive rights to purchase new shares proportional to their ownership. Vila Oliva will invest €7 million and the state €14 million in the first round. Unsold shares from the first round will be offered on the stock exchange in the second round.
Most of the recapitalization funds will go directly to settling debts with the state, public utilities, and creditors, ensuring the Institute becomes debt-free. The restructuring plan, valued at €88 million, also includes property sales, loans for modernization, and operational improvements between 2025 and 2028.
Following the recapitalization, the Institute will begin modernizing its facilities and equipment to reach four-star service standards. This phase also involves resolving property disputes with the state and planning further investments to improve service quality and attract international patients.
