Kosovo has approved the sale of a 75% stake in PTK to the consortium of Germany’s Axos Capital and the US’ Najafi Companies for €277m (US$364.5m).
A source close to the deal confirmed to TelecomFinance that the government has granted its…
Kosovo has approved the sale of a 75% stake in PTK to the consortium of Germany’s Axos Capital and the US’ Najafi Companies for €277m (US$364.5m).
A source close to the deal confirmed to TelecomFinance that the government has granted its approval.
In a public notification on its website today, the government said the sale “will create a strategic public-private partnership to develop this sector with a serious and economically-powerful operator”. The state retains the remaining 25% stake.
The Kosovo privatisation committee revealed the consortium as the highest bidder during a live broadcast last Friday (12 April). Their €277m offer, with a guarantee of €35m in cash on the company’s balance sheet at closing, surpassed the sole other bid of €150m by Lebanese M1. The sale involves PTK’s telecoms, not postal, business.
The contract is set to be signed within 60 days, after which the buyers have another 60 days to make payment, according to a Reuters report.
In its notification today, the government said the new enterprise to be created after privatisation will be a strong contributor to the national budget via tax payments and the sharing of 25% of the government’s dividends.
In a speech to the economic development council today, Prime Minister Hashim Thaci described the successful privatisation process as “extremely significant for the country’s development and growth”.
“This success demonstrates investor interest in the market of the Republic of Kosovo …,” he said. “Privatising PTK will help to increase competitiveness in this sector by offering more advanced technological services and products”.
Lazard and Raiffeisen acted as advisers for the privatisation process, launched last spring. Eight parties expressed initial interest and five were allowed to participate in the tender. The deadline for bids was extended several times and, when offers were finally due in early April, only two were submitted.
An earlier privatisation attempt was cancelled in late 2011.
