Government Tweaks NKBM Privatisation Programme
The government on Thursday changed the privatisation programme for Slovenia's no. 2 bank, NKBM, to incentivise retail investors to take part in the first part of the privatisation - an initial public offering involving 49% of the share capital.
For every ten shares that retail investors buy in the first phase, they will receive the right to one additional share in the second phase provided they hold on to their shares for a certain amount of time (six to nine months), Finance Minister Andrej Bajuk told the press.
This hold incentive will ensure greater dispersion of NKBM shareholders and greater participation by retail investors, Bajuk said. He recalled a 1994 decision of the National Assembly that physical persons must take part in the privatisation of restructured banks: "This is the government's response to the demand."
In accordance with the privatisation programme, which was adopted in May, 49% of NKBM will be sold in an initial public offering. It has not yet been decided what share will be allocated for retail investors; Bajuk said it would be about 15%. The maximum amount of shares an individual will be able to buy has not been set yet either, Bajuk expects it the ceiling will be set at between 2,000 and 3,000 euros.
After the IPO the shares will be listed on the Ljubljana Stock Exchange, presumably by the end of November. The second phase of privatisation will be followed within 180 days. Bajuk reiterated that the government intended to keep 25% plus one share indefinitely, the rest will be offered to well-informed investors.
NKBM had a market share of 10.9% at the end of 2006, according to the Bank Association of Slovenia, with total assets of EUR 3.67bn. Its subsidiary PBS has another 2%.
In the first quarter of this year it posted gross profit of EUR 13.1m.
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