Slovenian PM says expects state firm SDH to approve Telekom sale (updated)

Telekom Slovenije, D.d

07/06/2015 17:36

(Updates with quote, details, background) 
    By Marja Novak 
    LJUBLJANA, June 7 (Reuters) - Slovenian Prime Minister Miro 
Cerar said on Sunday he expected state investment firm SDH, 
which is coordinating privatisations, will approve the sale of 
state-owned telecoms operator Telekom Slovenia  TLSG.LJ  to the 
only bidder. 
    Investment firm Cinven has offered up to 130 euros per 
Telekom share, which values the company at 850 million euros. 
Its offer is valid until June 10.  ID:nL5N0YP1NZ  
    On Thursday SDH asked the government to decide on the sale 
of Telekom, the largest of 15 companies that were slated for 
privatisation in 2013. So far only four of those firms have been 
sold.  ID:nL5N0YQ4CQ  
    But the government said the decision on the sale should not 
be a political one and should be taken by SDH, which was 
established in 2014 in order to manage state firms and 
coordinate privatisations without political influence. 
    "Based on the decision of the SDH that the sale (of Telekom) 
would be suitable and economically viable ... the way to the 
sale is open," Cerar told a news conference after a government 
session. 
    While Cerar's Party of Modern Centre has already expressed 
its support for Telekom's sale, its junior coalition partner, 
the centre-left Social Democrats, have opposed the move. 
    Over the past decades Slovenia has been reluctant to sell 
its major companies, meaning the government still controls about 
50 percent of the economy. 
    Slovenia had planned to sell Telekom in 2008 but cancelled 
the sale in the last stages of the process saying bids were too 
low. 
    Cinven is bidding for a stake of 72.75 percent of Telekom, 
but will later have to offer to buy the rest of the shares at 
the same price, in line with Slovenian legislation. 
    The opposition centre-left United Left party and several 
civil society groups on Thursday plan a street protest against 
privatisation of Telekom and other companies, saying Slovenia 
should keep large firms in state hands. 
    Deputy President of the European Commission Valdis 
Dombrovskis said on Friday Slovenia should pursue privatisation 
in order to boost the economy and attract foreign investors. 
 ID:nL5N0YR2BD  
    Slovenia narrowly avoided an international bailout for its 
banks in 2013 after being badly hit by the global crisis due to 
its dependency on exports. The country managed to exit recession 
in 2014 and expects the economy to expand by 2.4 percent this 
year versus 2.6 percent in 2014.  
 
 (Reporting By Marja Novak, editing by David Evans) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/