Montenegro, Italy's A2A seal power utility deal

PODGORICA, Sept 3 (Reuters) - Montenegro's government and Italy's A2A (A2.MI) signed a contract giving the Italian company control of a minority stake in power monopoly Elektroprivreda Crne Gore (EPCG).

"This contract means a lot to Montenegro, that will become energy hub between western Europe and the Balkans", Montenegro's Deputy Prime Minister Vujica Lazovic told reporters after signing ceremony.

The contract will enable Italian company to get control of a more than 40 percent stake in state-owned EPCG.

A2A had won a tender to buy 18.3 percent stake, beating a higher bid from Greece's Public Power Corporation (DEHr.AT).

According to the contract, A2A is obliged to buy another 10 percent of shares from minority stake holders. "Under the contract, the Italian company will pay around 190 million euros ($271.4 million) (for the 18.3 percent stake) by the end of September," Lazovic said.

Earlier in June A2A got a seat on EPCG's managing board after buying a 15 percent stake.

Italian investors in June pledged to invest up to 5 billion euros in energy projects and infrastructure in Montenegro, including the construction of a 100-kilometre underwater power cable between the two countries with an initial capacity of 1,000 MW. Montenegro will get a 20 percent share in the cable. (Reporting by Petar Komnenic; Writing by Ivana Sekularac; Editing by David Holmes) ($1=.7000 Euro)