MK Group Proposes Restructuring Plan for Budvanska Rivijera AD

The privatization initiative for Hotelska grupa “Budvanska rivijera” AD in Budva has taken a significant step forward. During a recent meeting, the Council for Privatization and Capital Projects reviewed a proposal submitted by MK Group. This initiative seeks to adopt a comprehensive plan for the privatization and restructuring of the hotel group, which is a crucial player in Montenegro’s tourism sector.

In response to MK Group’s proposal, the Council concluded that the initiative should undergo a thorough professional analysis. This assessment will be conducted by the consultancy firm Horwath & Horwath Consulting based in Zagreb, with whom the Council has an existing advisory services contract. The consultant has been tasked with delivering a detailed legal and economic-financial analysis of the proposed project within 30 days.

The requested analysis will focus on two primary models: the proposed restructuring model and a joint investment model involving the government and private investors. Additionally, it will evaluate the relevant legal regulations that the Council must consider to proceed effectively with the privatization process.

Approximately ten days ago, MK Group formally presented its development vision for the Budvanska Rivijera to both the Montenegrin government and the Council for Privatization and Capital Projects. The initiative aims to enhance the potential of the hotel group, which is vital for the region’s economy. Furthermore, a letter of intent was submitted to Nikola Jovanović, the mayor of Budva, outlining MK Group’s plans.

This proposal marks a critical moment for the future of Budvanska Rivijera, as it seeks to revitalize the tourism sector in Montenegro while attracting necessary investment. The outcome of the analysis by Horwath & Horwath will play a pivotal role in shaping the next steps for this ambitious initiative.