Case Study “Juzni Jadran” Herceg Novi

Case studies · 27/10/2013

I: INTRODUCTION: The case of “Juzni Jadran” refers to the privatization of a tourist and catering company in Herceg Novi, which owned valuable real estate of more than 100 thousand square meters on the most beautiful part of the Montenegrin coast, with a considerable number of buildings. The case study shows that Podgorica-based company “Carine”, which appeared as a buyer of a first package of shares, for which it paid a negligible price instead of real privatization, and pushed the company “South Adriatic” into debt and liquidation, thereby taking its valuable real estate. It also shows one of the behavior patterns of privatization tycoons, who have emerged as buyers of once rich companies because of their property and abuse of official business in the economy, at the expense of the public interest and especially the interest of minority shareholders.