The Slovene Minister for Economic Affairs, Mr. Andrej Vizjak, intends to appoint a working group to prepare for the sale of the national telecommunication service provider Telekom.
Conservative estimates value Telecom at between EUR 1.1bn and EUR 1.4bn. The government is in direct control of a 62.5% Telekom stake and a further 11.6% stake through the state-run Slovenian Restitution Fund (SOD) and the state-run Pension Management Fund (KAD), according to BA-CA Slovenia Custody Manager Borut Vidmar.
The Slovene government plans to decide on the sale of a maximum 25% stake already in 2005 to generate proceeds of roughly EUR 276mn. The financial advisor is expected to be appointed in October 2005, the due diligence to be performed by the end of January 2006 and followed by the IPO one month after the due diligence. The final model of Telekom’s valuation is expected to be published by the end of May 2006. Roadshows and the publication of the final selling price are expected for autumn 2006. The sale could be concluded by January 2007.
When asked who the potential buyers might be, the ministry said it is leaning towards a strategic partner, said Vidmar. Apart from the European Bank for Reconstruction and Development, to date no other financial investors have announced their interest in becoming a major investor in Telekom. “A good option would be a combination of a strategic partner, financial and Slovene investors,” the ministry stated, but the complexity of challenges suggest that initiating a working group will set the goals of privatisation and devise a strategy that will serve as the basis for future government decisions.