Kosovo agrees PTK sale

17 Apr 2013

Pristina has approved the sale of a 75% stake in state-backed telco Post and Telecommunications Kosovo (PTK) to a consortium consisting of Axos Capital and Najafi Companies for EUR227 million (USD297.3 million), Reuters reports. The deal is to be signed within the next 60 days, with the transaction to follow within a further 60 days. Economy minister Besmi Beqaj said that the sale agreement guarantees the jobs of PTK’s 2,500 employees for the next three years, calming fears of imminent down-sizing: PTK’s trade union has strongly opposed the sale, staging protests alongside unions from other state companies going under the hammer amidst fears that privatisation will lead to job losses. Beqaj also addressed the nation’s reputation for corruption, adding: ‘This is a positive signal for other investors that Kosovo is becoming an attractive place for investment, that law and order is working. As noted by TeleGeography’s GlobalComms Database, a previous attempt to sell a stake in PTK was cut short after senior officials from the company were accused of ‘entering into harmful contracts, abusing official position[s] and misuse of economic authorisations’ by prosecutors from the European Union Rule of Law Mission (EULEX).

Kosovo, Telecom Kosovo (TK, Vala)