Govt Adopts Privatisation Programme for Steel Group
The cabinet has adopted a privatisation programme for the Slovenian Steel Group with which it intends to reduce its stake in the group to 25% plus one share over the next two years.
In line with the plan, confirmed at Thursday's cabinet session, the government would form two lots of shares: a 25% plus one share stake that it would retain and a 55.35% stake that it would sell.
The government said on Thursday that intends to find a "principal owner" for the group who would be able to assume the extensive business and social responsibilities associated with running such an important corporation.
Another goal for the government will be to maximise the selling price, with which it intends to reduce Slovenia's public debt.
The primary purpose of the privatisation is to raise the efficiency and the competitive ability of Slovenia's steel industry by finding a right ownership structure for the group, the government said.
The new privatisation programme replaces the plan adopted in 2001 that failed to produce major results.
Unlike the old programme, the new scheme envisages the sale of the group as a whole instead of the sale of subsidiaries piece-by-piece.
Moreover, the new scheme also includes a contingency plan in case the sale of the majority stake does not produce the desired results: the government has the option of breaking up the majority stake into a number of smaller stakes and selling those off to a number of investors, including portfolio investors.
The majority stake in the Steel Group has been placed on the government's list of state property earmarked for sale in 2006 and 2007.
The Slovenian Steel Group is made up of six steel producers, the biggest being Acroni Jesenice and Metal Ravne.
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