Four companies from Europe, US interested in buying Telekom

Luka through a Facebook post, has said four companies from different EU and US countries have expressed interest in the partial or overall takeover of Kosovo's Telekom company.

In order to prepare this process [privatisation], which, as mentioned earlier, will only be initiated after the completion of the company's restructuring and increased value, the Inter-ministerial Commission for Public Enterprises recommended for authorisation of the government commission for the privatisation of this” company, Luka has said.

 Minister Luka's full appointment:

Today the government made decision to restore Kosovo Telecom
The Kosovo Public Company, U.S.A. Since 2015 it has been facing a deep financial and operational crisis. Over the past three years, the financial losses of the company are worth between 8m and 52m euros annually. Beyond the measures taken by the board of directors and current management, this company continues to mark financial losses that seriously jeopardise its liquidity.

In an operational respect, the board of directors in the month of May 2018 has decided on opening the phase of restructuring, halting employment and promotions at the company. Also, measures have been taken in reducing operational spending. Furthermore, a plan for emergency investment has been drafted, which they expect to be realised in a short time.

In co-operation with the Board of Directors, as minister responsible for Public Enterprises, I have asked the European Bank for Reconstruction and Development (BERZH) to provide technical assistance (in the form of grant) for the phase of restructuring and reposition of this company. In demand, I have noted the fact that the Government of Kosovo, based on its governing plan, envisions the privatisation of this company. I have also made it clear that before each privatisation decision, improved performance of the company, as well as the practices within it, is priority and would precede any other process.

The EBRD has responded positively, in which its readiness is expressed: providing technical assistance in the restructuring phase, providing a loan of up to 25m euros, and drafting a document on steps Kosovo Government must follow for the privatisation of this company, which, among other things, is based on principles as follows: the fair assessment of each bid for privatisation of Telekom, commitment and transparency in this process, encouraging competition and review of Kosovo's processes and structures within the Telecommunication.

In addition, this procedure has begun to take into account that so far, at least 4 companies from different EU and US countries have expressed interest in the partial or inflammatory takeover of Kosovo Telecom Company.
In order to prepare this process, which, as mentioned earlier, will only be initiated after the completion of the company's restructuring and increased value, the International Administration Commission's recommendation for Public Enterprises authorisation of the government commission for privatisation of the company was approved.

It is noteworthy that the social dialogue between the shareholder and the labour union will be an important part of this process, as it has been so far, to ensure that workers' interests are deemed worthy.

Meanwhile, the European Bank for Reconstruction and Development (European Bank for Reconstruction and Development (EBRD)) will ensure not only transparent process, but more importantly, confidence in all interested in this” (sic).