The Government of Montenegro and HTP Vile Oliva, co-owned by Žarko Rakčević, along with related parties, Development Bank of Montenegro, Health Insurance Fund and Employment Agency, have jointly announced a takeover offer for shares of the Institute “Dr Simo Milošević” based in Igalo. Minority shareholders have 15 days to decide whether to sell their shares to the Government and HTP Vile Oliva.
The offer concerns 54,846 fully paid voting shares not owned by the Government, HTP Vile Oliva, or related parties, at a price of €58 per share. The Government and HTP Vile Oliva currently hold a combined 85.66% stake in the Institute. Under their agreement, HTP Vile Oliva will acquire 60.32% of the tendered shares, and the Government will acquire 39.68%.
The Government has allocated €1.26 million to cover the maximum potential purchase based on the offer price. Minority shareholders wishing to accept the offer must submit a written acceptance and transfer order within the 15-day period.
The Institute “Dr Simo Milošević” is recognized as a leading health and rehabilitation center in the region but has faced serious financial difficulties, worsened during the COVID-19 crisis and burdened by debts from the 1990s, threatening its long-term sustainability.
A restructuring plan approved in February 2025 aims to ensure both short-term financial stabilization and long-term recovery. Key measures include ownership restructuring through share acquisition and recapitalization, debt restructuring, strategic continuation of public interest activities, investment in facility modernization, and business restructuring involving marketing, IT upgrades, and human resources development.
Trading of the Institute’s shares on Montenegroberza has been suspended since July 18 pending the takeover process.
Following the takeover, a recapitalization of approximately €21 million is planned, with HTP Vile Oliva committed to contributing €7 million and the remainder to be provided by the Government. Other shareholders may also participate. This recapitalization will stabilize the Institute’s finances and enable its transformation into a modern, competitive, and financially sustainable institution.
