The parent company ERS has acquired shares in the Ugljevik coal mine and thermal power plant (RiTE Ugljevik) for approximately 10 million euros, completing the company’s share issuance process. RiTE Ugljevik issued 31 million shares, each with a nominal value of 0.51 euros, setting a condition that at least 60% of the shares must be sold for the issuance to be deemed successful. The Supervisory Board confirmed that, as of yesterday, after the expiration of preemptive rights for existing shareholders, the public offering was concluded successfully. During the preemptive rights period, 20 million shares—representing 64.5% of the total issuance—were subscribed and paid for, surpassing the minimum success threshold.
The primary goal of this share issuance was to raise 15.8 million euros to settle part of RiTE Ugljevik’s obligations to Slovenian company Elektrogospodarstvo, following an arbitration ruling. However, investors were cautioned about the risks related to RiTE Ugljevik’s operations.
In addition to the 125 million euros that RiTE Ugljevik owes to Elektrogospodarstvo, the company also faces an outstanding debt of 65 million euros for undelivered electricity from 2022 to 2024. Diko Cvijetinovic, the acting director of RiTE Ugljevik, previously stated that these debts have been assumed by the Government of the Republic of Srpska and the parent company. According to Cvijetinovic, the government has committed to covering 67 million euros of this debt through the recapitalization of RiTE Ugljevik, while the parent company will pay the remaining amount over the next seven years.
