The government of Kosovo is launching a new privatisation attempt of incumbent PTK (Post and Telecommunications of Kosovo), with a prequalification process taking place in June/July. The winning bid is expected to be announced at the end of October, and…
The government of Kosovo is launching a new privatisation attempt of incumbent PTK (Post and Telecommunications of Kosovo), with a prequalification process taking place in June/July. The winning bid is expected to be announced at the end of October, and deal closure expected by the end of November.
At an investor presentation in London today, Besim Beqaj, minister of economic development of Kosovo, described the target as one of the most profitable companies in the country. He noted that the government had focussed on removing possible barriers, for instance in the legal environment.
The formal tender process for a 75% stake in PTK, which is run by Lazard and Raiffeisen Investment, will launch in late July, and binding bids will be due mid October, the investors’ conference was told today.
PTK is currently undergoing pre-privatisation restructuring, at the end of which the postal services business will be separated from PTK, with only the telecoms business remaining.
This process will be completed prior to the end of the privatisation process.
The sellers have hired law firms Simmons & Simmons and Grant Thornton as legal advisers.
In 2011, the government of Kosovo already unsuccessfully tried to privatise PTK, with Telekom Austria and Deutsche Telekom owned T-Hrvatski of Croatia taking an interest at the time. The sales process was abandoned following corruption allegations against senior management.
Both players are seen as likely to look at PTK again. Turkcell, which was unsuccessful in its attempt to buy Bulgarian Vivacom earlier in the year, could also be interested.
Beqaj noted that in last year’s sale process the focus had been on finding a trade buyer, while this time the bidding process is also open to financial investors.
He told TelecomFinance that he does not expect last year’s corruption allegations to have an impact on the new privatisation attempt, noting that, among other things, the CEO of PTK has changed in the meantime.
PTK has a 71% market share in mobile, and a 94% share in fixed voice in Kosovo.