News 1. 4. 2016

Signing of Engagement Letter with Financial Advisor to the Sale of Shares of Nova Ljubljanska banka, d. d.

Following the extraordinary measures of the Bank of Slovenia of 18 December 2013, the Republic of Slovenia (RS) has become the sole shareholder and 100% owner of shares of Nova Ljubljanska banka, d. d. (NLB). Slovenian Sovereign Holding (SSH) had run the selection procedure for a financial advisor in the sale of NLB shares and on 15 February 2013 sent a Request for Proposals (RfP) for their potential engagement in the provision of financial advisory services to 13 potential financial advisors (international financial institutions). The deadline for the submission of proposals expired on 29 February 2016. By this time, SSH received 11 proposals.

On the basis of criteria set in advance, which primarily and particularly included experience and references of the bidders and the price of their services proposed, SSH evaluated the proposals received and determined a short-list of potential financial advisors who were invited to personally present their proposals and their teams to take part in the project should they have been be selected. Negotiations were continued with the bidders, who on the basis of their presentations were assessed as suitably experienced and having required professional competence, in regard to the price of services proposed and other elements of the Engagement Letter. On the basis of the evaluation of the final and improved proposals and Engagement Letters, Deutsche Bank (DB), a global investment bank, was selected as the best bidder.


Deutsche Bank's references in regard to financial advisory services are vast and of good quality. If only the most important corporate finance and global transaction banking business transactions are mentioned, DB has acted either as a global coordinator in IPOs or as a financial advisor to mergers and acquisitions (M&A) in the following transactions: ABN AMRO Group, Deutsche Pfandbriefbank AG, Aldermore Group PLC, Pohjola Bank plc, Permanent TSB, Hypo Group Alpe Adria AG, TT Hellenic Postbank S.A.


By way of the Engagement Letter, DB will assume the engagement in providing advisory services in the sale of NLB shares with the due care of a good expert. The financial advisor's obligation in the initial phase is to prepare a feasibility study pursuant to which, acting as prudent and efficient manager of RS's capital assets, SSH will assess whether the provisions of the adopted State Assets Management Strategy (the Strategy) provide for such implementation of the process for the sale of NLB shares as envisaged by the Strategy so that the maximising of the value for RS is achieved and long-term development of NLB is ensured, and SSH will make a proposal to the Government of RS on any potential amendments to the said Strategy. One of key initial assignments of the financial advisor is to provide counselling in connection with the preparatory activities needed prior to the launch of the sales process of NLB shares. In accordance with the sales method selected, the financial advisor will carry out all other necessary services at the highest international standards applied in the sale of companies.


By signing the Engagement Letter with DB as financial advisor, SSH has launched preparatory activities in connection with the NLB sales process, in accordance with the Asset Management Annual Plan 2016. The SSH's goal is to execute all procedures for the sale of NLB in accordance with commitments made by the Republic of Slovenia to the European Commission, and to attain objectives as foreseen by RS in the NLB privatisation process.  

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