December 3 (SeeNews) - The intended joint acquisition of Croatian power transmission equipment manufacturer Dalekovod [ZSE:DLKV] by Koncar Elektroindustrija [ZSE:KOEI] and Malta's Construction Line Limited has received the green light from the competition authority of Montenegro where Dalekovod has a branch office, Koncar said on Friday.
The Agency for Protection of Competition of Montenegro found that the notified concentration will not result in any significant prevention, restriction or obstruction of competition in the market of Montenegro by creating or strengthening of a dominant position, Koncar said in a statement.
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The competition authorities of Croatia and North Macedonia endorsed the acquisition earlier this autumn.
On June 30, the shareholders of Dalekovod approved a proposal for the company's financial restructuring made by Koncar and Construction Line Ltd. The proposal envisaged cutting Dalekovod's share capital to 2.5 million kuna ($375,000/332,000 euro) from 247.2 million kuna to cover earlier losses, only to further increase it to up to 412.5 million kuna in order to raise funding to cover the company's debt to creditors under a pre-bankruptcy settlement agreement concluded in January 2014. As a result of the initial capital cut the company made a reverse stock split in July by consolidating every 100 shares into 1, and later the same month offered to potential investors new ordinary shares at face value of 10 kuna each.
In late July Koncar said its unit Napredna Energetska Rjesenja will contribute 310 million kuna in cash to Dalekovod's capital increase. Founders of Zagreb-based Napredna Energetska Rjesenja are Construction Line and Koncar's fully-owned subsidiary Koncar Ulaganja.
Dalekovod's shares traded at 84 kuna intraday on Friday on the Zagreb bourse, unchanged compared to the last closing price. Koncar's shares last traded on Thursday, closing unchanged at 770 kuna.
(1 euro=7.528 Croatian kuna)