Slovenian Government Pushes On With Sale of Majority Stake in Telekom Slovenije
Published on: 11th Jun 2014
The Slovenian government is to sell off its majority stake in Telekom Slovenije later this year, having already received several offers for the stake.
The government owns 72.4 percent of the telecoms company, which has a market capitalisation of around USD1.3 billion.
This is the second attempt to sell the stake, following an aborted attempt to sell just under half the company in 2007.
However, the Moody's debt ratings agency downgraded the company's debt last year on concerns about weak liquidity due in part to local banking problems, and that the shareholders increased their dividends last year -- further eating into its resources.
Moody's said that the rating downgrade reflected its view that Telekom Slovenije's liquidity profile remains weak, in light of its high reliance on domestic banks, which increases the company's vulnerability to stress in the Slovenian banking sector.
The state investment fund SOD is coordinating the sale and announced the details of the tender on Monday. The sale is not expected to be affected by the sudden call for a General Election next month following the resignation of the Prime Minister last month.
The government is also planning to privatise the country's second largest bank, Nova KBM later this year.