European Commission approves privatization of NLB Bank in two phases

The European Commission has approved Slovenia’s plan to sell Nova Ljubljanska Banka (NLB) in two phases, entailing the sale of at least 50% of the shares by the end of this year and 25% minus one share by the end of 2018.

It is expected that the decision on starting the initial public offering for the sale of NLB Bank, 100% owned by the state, will be reached by the Supervisory Board by the Slovenian Sovereign Holding (SSH), which is in charge of the sale.

Following the approval of the decision, SSH will announce the intention of offering the bank’s shares at the Ljubljana Stock Exchange and, as expected, in London, and the IPO prospectus is expected in two weeks.

The Slovenian Ministry of Finance reported that the approval by the European Commission would enable greater legal security for potential investors and, with that, better conditions for the initial public offering of NLB.

As the STA press agency explains, the government in Ljubljana asked Brussels for the permission to sell 75% stake in NLB in two phases in order to increase the chances of getting more money from the sale.

The Slovenian government, according to unofficial sources, believes that NLB, which has recorded positive business results for the third year in a row and done away with a considerable part of NPLs, is worth EUR 1.25 billion on the whole, which is its latest book value.

Slovenia obliged in 2013 to sell its biggest bank by the end of 2017 in order to in turn ask the European Commission for an approval for providing state help to NLB.

Nova Ljubljanska banka d.d. Ljubljana

NLB Banka a.d. Beograd

EUROPEAN COMMISSION Bruxelles

Vlada Republike Slovenije

Nova Ljubljanska Banka

NLB Bank

European Commission

Government of Slovenia

sale of Nova Ljubljanska Banka

Slovenian Sovereign Holding SSH

IPO of NLB Bank