PTK: Gov’t to discuss additional investors; hopes for EBRD participation

The government committee for the privatization of PTK, the Kosovo state owned operator, will meet tomorrow (Thursday, 22 November 2012) to discuss applications of new parties to join the bidding process, according to a source.
Meanwhile the sellers hope…

The government committee for the privatization of PTK, the Kosovo state owned operator, will meet tomorrow (Thursday, 22 November 2012) to discuss applications of new parties to join the bidding process, according to a source.

Meanwhile the sellers hope that Kosovo’s recent acceptance as an EBRD member will have a positive effect on the privatisation process by reducing the political risks involved for bidders.

TelecomFinance reported previously that unnamed parties were interested in joining consortia that are still in the race for the state’s 75% PTK stake.

According to recent local media reports one of the parties is Citibank’s Citi Venture Capital International (CVCI), which plans to team up with Twelve Hornbeams and Avicenna Capital, which are still in the bidding process. According to the source two consortia are planning to add additional equity partners.

As reported earlier, alongside Twelve Hornbeams and Avicenna Capital the other parties taking part in the bidding process are Portugal Telecom together with Albright Capital Management, and British Telecom-Poland in a consortium with Columbia Capital and ACP Axos Capital.

Turkcell and M1 International are both participating without a partner.

EBRD admission

The sell-side hopes that Kosovo’s admission to the European Bank for Reconstruction and Development (EBRD) as its latest member last week can help reduce the risk for bidders. It is understood that the sellers hope that the EBRD will help with financing the transaction, or that it might inject equity into PTK itself.

The EBRD announced last Friday that Kosovo is to become a member of the bank as a recipient country. The admission is subject to completion of a number of internal procedures by 17 December at the latest.

The source suggested that the EBRD could have an interest in investing in PTK, in order to show its commitment to the new member state.

At tomorrow’s meeting the government committee will also discuss a potential further delay of the bidding deadline, which is currently set for 10 December. The source did not rule out that final bids could be accepted in 2013.

The privatisation committee of Kosovo is advised by investment banks Lazard and Raiffeisen Investment.