The Slovenian government 6 February adopted a classification of investments that will be put up for privatisation, IHS Global Insight reported. 
According to the Ministry of Finance, the privatisation will be conducted in four different ways, with the investments being categorised as "strategic, important, and portfolio investments". Strategic investments generally include companies that conduct public utility services, have jurisdiction over public affairs, or have a dominant market position. In strategic investments, the government will retain 50% plus one share. In important companies, the government will retain 25% plus one share, but the state may be able to reduce its stake below 25% provided this would lead to "significantly better conditions" for a sale, while also guaranteeing long-term development. The important companies mainly include those holdings that secure influence on strategic and development decisions, keep seat in Slovenia, or secure productive jobs.
The last category is under no obligation to preserve any controlling stake; however, their management will be subject to "strictly economic criteria". Among the state-owned companies up for grabs will be telecom provider Telekom Slovenije, banks Abanka and Nova Ljubljanska Banka (NLB), and energy company Petrol. The government will retain 25% plus one share in NLB, while the remaining companies have been qualified as portfolio investments. In Petrol, the energy segment of the company will be exempt, however, as it is strategically important for the country. No deadline has been set for the sale, while the strategy is also subject to parliamentary approval.
"The plan still needs to obtain parliament's approval before it can be implemented. Slovenia is currently in the midst of a political crisis, with two coalition partners already leaving the government, depriving it of its majority. As the plans for privatisation had already been discussed at the beginning of the government's tenure in late 2011, even those parties that moved into opposition are likely to support it. However, if the political crisis intensifies and the government collapses, the implementation of the proposed measures may come to a halt amid technicalities, with the issue being resolved only when a new government or a new cabinet materialises. Finding investors may also prove problematic, especially while the political crisis continues, also weighing heavily on the country's sovereign risk rating," IHS Global Insight reports.
Source: bne