LJUBLJANA (Slovenia), February 7 (SeeNews) – The Slovenian government’s stake in Telekom Slovenije [LJE:TLSG] is most likely to be first up for sale and also the most attractive of the state equity holdings that have been earmarked for divestment, a local analyst said on Thursday.
On Wednesday, the Slovenian government adopted a classification of its equity holdings that will determine the format and scale of future disinvestment activities. The classification groups state-controlled stakes into three categories – strategic, important and portfolio.
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“Most attractive for investors among the companies in the strategic or portfolio pools will be energy company Petrol [LJE:PETG], reinsurer Sava Re [LJE:POSR], Telekom Slovenije and drug maker Krka [LJE:KRKG] and maybe also motorway company DARS,” Saso Stanovnik, head of research at Ljubljana-based investment company ALTA Invest, told SeeNews in an email.
The equity pools include several businesses that are in a difficult financial situation or have seen their performance deteriorate severely over the last few years and these, the expert said, could draw interest only at very low valuations since potential investors would have to recapitalise them. “Here I count Abanka Vipa [LJE:ABKN], flag carrier Adria Airways and business conglomerate Sava [LJE:SAVA].”
In his view, insurer Zavarovalnica Triglav [LJE:ZVTG] could be an interesting investment opportunity although there the state would have to keep 25%+1 share.
According to the classification, in companies considered strategic, the government will keep 50% plus one share while in those classified as important, it will retain ownership of 25% plus one share. Portfolio investments will be eligible for full divesture based on purely business criteria.
The list of strategic investments includes rail infrastructure management company SZ-Infrastruktura, energy company Gen Energija, power utility group HSE, electricity distributors Elektro Maribor and Elektro Primorska and lottery operator Loterija Slovenije.
Airport operator Aerodrom Ljubljana [LJE:AELG], port operator Luka Koper [LJE:LKPG], rail operator Slovenske Zeleznice, gas supplier Geoplin, lenders NLB and NKBM [LJE:KBMR], Zavarovalnica Triglav and Posta Slovenije fall within the important investment category.
The portfolio investment pool includes Adria Airways, DARS, lenders Banka Celje and Abanka Vipa, Pozavarovalnica Sava, Casino Bled and Casino Portoroz, Krka, Sava, baked goods maker Zito [LJE:ZTOG], Telekom Slovenije and Petrol.
The classification of the state-owned equity holdings is now pending approval by parliament.
“Since the government coalition is now a minority one and the classification in questions is also tied to the creation of a Slovenian State Holding that will be in charge of privatization activities, it’s going to be a tough job to get this through the parliamentary procedure. I see may be one third of a chance of this happening,” Stanovnik said.