Siminn sold

The Icelandic government has finally privatised the national PTO Siminn. A consortium including the Kaupthing bank and the retail group Bakkavor won the auction with an offer of ISK66.7 billion (USD1.04 billion). Unsuccessful bidders included the local investment firm Burdaras, which offered ISK60 billion, and the Atorka group, which bid ISK55 billion. Siminn reported EBITDA of ISK7.54 billion in 2004, up from ISK7.38 billion the previous year. At least 30% of the telco will be offered in a public sale which must take place before the end of 2007. Talk of a full-scale privatisation first surfaced in 2000, with TDC of Denmark heading a list of interested parties, but the plans were shelved in March 2002 when none of the offers met the government’s expectations. Siminn is the dominant operator in both the fixed line and cellular markets.