Bosnian authorities deny plans for BH Telecom sale

12 Jan 2017

There are no current plans to privatise multi-service operator BH Telecom, the government of the Federation of Bosnia and Herzegovina has said in response to recent media reports which have claimed that a sale is being sought by the IMF. To that end, a statement cited by SeeNews saw the state refute such suggestions, with it noting: ‘The sale of BH Telecom has never been a condition of the IMF’.

However, the report notes that in November 2016 the government had confirmed the IMF was expecting it to restructure both BH Telecom and the country’s other state-owned telco, HT Mostar, as a condition of the financial body’s EUR550 million (USD575 million) loan deal with Bosnia. This restructuring process was to be preceded by a due diligence study of both companies, with local press reports claiming the following month that this process would be complete by March 2017, ahead of a possible sale of the telcos the following June. Depending on the results of the due diligence, it has been suggested that the Federation could opt for several courses of action, including a partial stake sale, a full privatisation, or a retention of its existing stakes in the companies.

Bosnia-Herzegovina, BH Telecom, HT Mostar (HT Eronet)