The outgoing Slovenian government has announced its plans to sell NLB, the country’s largest state-owned bank.
The state, represented by the Slovenian Sovereign Holding (SDH), and NLB announced the intention to sell at least 50% stake in the bank. Slovenia will sell shares on the stock exchanges in London and Ljubljana. A total of 90 percent of the shares will be bought by institutional investors, the remainder will be available to retail investors.
NLB is in good condition. Ratings agency Standard & Poor’s has the long-term issuer default rating (IDRs) for the bank at BB.NLB’s strategy is to increase its profitability from 7% to 10% in the future and to lower costs compared to revenues.
»Interfering of politics in privatisation of state-owned companies raises doubts about its transparency and thus negatively affects the sales process,« says Kračun.
»Lack of public information strengthens citizens' distrust, increases speculation about the presence of corruption and raises fears of foreign investors entering Slovenia.«