Telekom Slovenije privatisation likely to be derailed

4 Jul 2014

Slovenia’s outgoing prime minister has ruled out completing the privatisation of incumbent Telekom Slovenije until a new government is formed via a snap election set for 13 July. As reported by Reuters, Alenka Bratusek said yesterday: ‘Privatisation processes can continue, but privatisations cannot be completed before the new government is formed so that the new government will have a chance to reconsider them.’ She added that the step was taken because privatisation was ‘the hottest pre-election topic’ – a seemingly clear indication of it being a tactic to win votes among an electorate generally opposed to state company sell-offs. The decision could ultimately deter investors, or potentially bring down the sale price, analysts quoted by Reuters said. Furthermore, prime ministerial candidate Miro Cerar, whose Stranka Mira Cerarja (SMC) party is leading pre-election polls, has said that he will cancel the privatisation of Telekom Slovenije if he wins the election.

Meanwhile, local press reported that Slovenia has received eight non-binding bids for Telekom, including German giant Deutsche Telekom, Sistema/MTS of Russia and Turkcell, although the highest financial bids reportedly came from investment funds, not telcos.

Slovenia, Deutsche Telekom (DT), Sistema, Telekom Slovenije (incl. Mobitel), Turkcell