Slovenia postpones NLB sale presentations due to Brexit (updated)
04/07/2016 11:59
(Adds quotes, analyst, trade union)
By Marja Novak
LJUBLJANA, July 4 (Reuters) - Slovenia has postponed
investment road shows for the sale of its largest bank, Nova
Ljubljanska Banka (NLB), due to increased market volatility
caused by Britain's vote to leave the European Union, Slovenian
Sovereign Holding (SDH) said on Monday.
SDH, which manages state assets and coordinates the
privatisation process, said the NLB initial public offering
(IPO) should still be completed by the end of 2017 as planned.
"The result of the referendum in Great Britain led to
greater volatility on the financial markets," SDH said in a
statement, adding that roadshows, which were initially planned
for July, should be postponed until financial markets are
calmer.
NLB is the largest of about 30 companies whose sale is due
to start this year. Deutsche Bank DBKGn.DE is advising SDH on
the sale. ID:nL5N18935R
"Brexit caused bank shares across Europe to fall. It is
still possible that the sale of NLB will be completed as
planned, but Brexit certainly hurt those plans," said Saso
Stanovnik, chief economist at Alta Invest.
One Slovenian trade union last week called on the government
to stop the sale of NLB, saying that the time was not right due
to the low price of bank shares in the EU.
SDH also told Reuters that its privatisation plans remain on
track despite Friday's resignation of its chief executive, Marko
Jazbec. urn:newsml:reuters.com:*:nL8N19N2A7
Jazbec resigned over a dispute regarding the management of
state-owned port Luka Koper LKPG.LJ . It is not clear when the
new head of SDH will be nominated.
(Reporting by Marja Novak, editing by Louise Heavens)
((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters
Messaging: marja.novak.thomsonreuters.com@reuters.net))
Keywords: SLOVENIA PRIVATISATION/NLB